Corporate Social ResponsibilityReport 2005

2005 2004

Sustainability Management System (see p. 4 et seq)

Externally re-certified under DIN EN ISO 14001 for 2005 –2008 (first certification in 1999) In 2005 integration of DWS and offices in New York

Environmental data (see p. 45 for further data, incl. foreign countries and German affiliates) Power consumption (in gigajoules)1 787,740 858,919 Heating energy consumption (in gigajoules)1 641,365 775,798 CO2 emissions from power production (in tons)1 152,612 165,391

Listing of Deutsche Bank in Sustainability Stock Indices (see p. 18 et seq)

Dow Jones Sustainability World Indices Dow Jones STOXX Sustainability Indices FTSE4GOOD Indices Ethical Index Euro & Global ASPI Index

Annual Performance of Sustainable DWS Mutual Funds (see p. 24 et seq)

DWS Invest Sustainability Leaders 8.9 % 5.1 % GKD-Fonds 12.9 % 6.2 % DWS Bildungsfonds 13.7 % 6.2 % PANDA Renditefonds DWS 7.2 % 3.7 % DVG Stiftungsfonds 7.7 % 5.0 %

Staff (see p. 28 et seq)

Training (expenses per employee2 in EUR) 1,583 1,479 Apprenticeship programs (expenses in EUR million) 40 42 Employee Commitment Index (see p. 34) 68 68

Perception of Deutsche Bank as a responsible corporate citizen3 Germany 64 % 38 % Globally 66 % 51 %

Volunteering activities of staff members in Deutsche Bank volunteer programs (in days)4 7,155

Corporate Citizenship Spending (in EUR million; see p. 53)

Donations 56.8 5 42.8 Sponsorships6 26.0 24.3 Deutsche Bank Foundation7 5.6 4.6 Other foundations7 1.3 1.2 Total 89.7 72.9

Prizes and Rankings 2005 (selection; see p. 101)

Corporation of London Dragon Award Success Factor Family 2005 Golden Peacock Global Award for Corporate Social Responsibility Total E-Quality-Award

1 Only Deutsche Bank AG and Deutsche Bank Private and Business Clients AG in Germany2 Number of employees (headcount)3 Representative online survey among Deutsche Bank staff worldwide4 Data collected for the first time in 20055 Including extraordinary spending for disaster relief6 Only for culture and society7 Spending by endowed foundations of Deutsche Bank

Corporate Social Responsibility: Facts & Figures (selection—for further performance indicators please see back cover page)

1

Corporate social responsibility starts with taking responsibility for and within the company. This is accompanied by a company’s commitment to the societies in which it does business—and this does not stop with giving financial support. What is at stake is the future viability of the company and of society as a whole. And both commitments are mutually inter-dependent: A company’s long-term success is in the best interest of society, and it is in turn in our company’s best interest—i.e. in the interest of our shareholders, staff, and customers—to take action to overcome the vari-ous and new social challenges with which we are confronted today.

Sustainable development is becoming ever more important for compa-nies, both in their business activities and in their activities as corporate citizens. Acting sustainably ensures a competitive advantage. Due to the increased importance of this fact, we have moved the corresponding chapter to the beginning of our fourth Corporate Social Responsibility report.

Moreover, the report once again underlines our active approach toward a variety of social issues and our relationship with our clients and employ-ees. Interdisciplinary conferences on the growth of cities; concrete co-operations with schools, universities, or cultural institutions; international initiatives such as the Global Compact; discussions with environmental or human rights organizations; global staff surveys; and the treatment of customer complaints: all these examples show that constructive dia- logue is a pillar of our corporate development and our social commitment. Even this report forms part of that dialogue, which means that we hope to not just give you comprehensive information, but to also get feedback from you.

Yours sincerely,

Commitment Creates Value for All

Josef Ackermann Chairman of the Management Boardand of the Group Executive Committee

Tessen von HeydebreckMember of the Management Boardand of the Group Executive Committee

Responsibility Toward Our Stakeholders

4 Sustainability Management: A group-wide function at Deutsche Bank

Shareholders 8 Investment in Renewable Energies – Combining sustainability and shareholder value

12 Long-Term Brand Value 14 Corporate Governance 15 Sustainable risk management 16 Our Compliance and Anti-Money Laundering Program 18 Sustainability ratings and indices

Clients 20 On the Path to Graduation – Advice and financing opportunities for students

24 Discretionary portfolio management with sustainable investments 24 Sustainability-oriented funds issued by DWS 25 Product responsibility and consumer protection 26 Data protection 27 Satisfaction of our private and business clients 27 Islamic Banking

Staff 28 Taking Their Careers in Their Own Hands – Coaching and training models to actively promote individual careers

32 Education and training 32 Investing in the training of our staff 34 Leadership and support for our employees 34 Creating a work-life balance 35 Compensation and benefits for our employees 35 Compensation plans for staff council members 36 Global Diversity

Society 38 Innovation with Leverage – New USD 75 million fund to combat poverty

42 Operational environmental protection 44 Environmental data 44 Sustainability in corporate purchasing 45 Comparison of environmental data 2001–2005 46 Contribution to fighting climate change 48 Memberships in organizations that promote sustainability 49 Global Compact – communication on progress 50 Political dialogue 50 Deutsche Bank Research 51 Business Continuity Management 51 Sharing and promoting tax know-how

Commitment to Society

52 Principles and Areas of Activity of Our Commitment to Society

Education 54 Pinstripes Optional – Youth Bank: Seed money from a different kind of sower 58 Education projects in economics Cultural education projects Getting started in a career Promoting science

Community Development 60 Deutsche Bank’s Disaster Relief Program – Alejandro Caballero on how Deutsche Bank has been helping victims of natural disasters

64 Other Community Development Projects

Music 66 Wishes Are Born of New Experiences – KINDER ZUM OLYMP! A competition to foster cultural education

70 Other Music Projects

Art 72 “Art Has Become Part and Parcel of Our Daily Lives” – 25 Years of the Deutsche Bank Collection

76 Other Art Projects

New Networks 80 Urban Age – An Investigation into the Future of Cities – Building networks of competence for sustainable urban development

82 Further Initiatives

Volunteering 84 Opening a Window onto New Experiences – Bank staff members improve the quality of life and education in the London ward of Shoreditch

88 Other Volunteering Initiatives

Corporate History 90 Women in Leading Positions – From the switchboard to the boardroom: the long journey through the decades

Appendix 95 Deutsche Bank Foundations and Charitable Institutions 101 Prizes, Awards, and Rankings 2005 102 Corporate Goals and Measures 104 About This Report (GRI-Index) 106 Imprint/Publications

4

Acting sustainably is a cross-departmental task, which affects all divi-sions, all levels, and all decisions within Deutsche Bank. In order to meet this challenge, Deutsche Bank has established a comprehensive Sustain-ability Management System on the basis of the industry norm DIN EN ISO 14001. Internal policies and standards define the responsibilities of the Management Board, the senior management, and the individual employ-ees for economic, ecological, social, and ethical issues. Principles for the actions and decisions of every Bank employee can be derived from the Sustainability Management System. All sustainability-related Corporate Center departments and the PCAM (Private Clients and Asset Manage-ment) and CIB (Corporate and Investment Bank) divisions participate in the system.

We intend to further extend the Sustainability Management System to additional international locations and to more Group affiliates.

In 2005 we■ integrated 60 Wall Street, New York, into the Sustainability Manage-

ment System and had it certified by external auditors for the first time. Starting with operational environmental protection, we plan to gradu-ally include all our business activities in New York into the system;

■ integrated our affiliate DWS into the system and included it in the cer-tificate according to DIN EN ISO 14001;

■ appointed Sustainability Compliance Officers for all participating depart-ments, who will monitor and ensure the implementation of the system in their departments respectively.

In 2006 the London branch, the Asia/Pacific region, and the affiliate DB Bau- spar AG are to be integrated into the Sustainability Management System.

To ensure continuous improvement, our internal policies and standards for the Sustainability Management System are regularly updated and ad-justed.

In 2005 we■ revised the Deutsche Bank Mission Statement on Sustainability;■ updated the Group Policy on the Sustainability Management System

and included social and ethical aspects;■ revised the Group Standard on Operational Environmental Protection and

implemented it together with seven sub-standards on waste treatment, facility management, emergency planning, traveling, corporate purchas-ing, risk prevention in environmental protection, and outsourcing;

■ adopted four system-steering standards on aspects of sustainability, the conduct of audits, the management review, and on the setting of goals, measures, and parameters.

Sustainability Management A group-wide function at Deutsche Bank

Acting Sustainably 5

External audit of the Sustainability Management SystemSince 1999 our Sustainability Management System has been audited and certified annually by Det Norske Veritas in line with DIN EN ISO 14001. These audits assess and measure how well we have achieved the goals set in the Sustainability Program and in internal regulations—with a focus on continuously improving the system. As in the years before, Det Norske Veritas confirmed again in 2005 that our Sustainability Management Sys-tem meets the requirements of DIN EN ISO 14001.

Our Sustainability Program 2005–2008The Sustainability Program is a key tool within the Sustainability Manage-ment System. Deutsche Bank’s divisions—Private Clients and Asset Man-agement (PCAM), Corporate and Investment Bank (CIB), and the Corporate Center (CC)—have adopted goals and measures for the three years from 2005 in order to continue and strengthen the Bank’s sustainability efforts. These goals and measures were then approved and adopted by the Com-mittee of Sustainable Development.

Under the Sustainability Programs for 2005–2008 the divisions and departments which participate in the Sustainability Management System (see box) oblige themselves to

■ integrate sustainability-related aspects in their specific procedures and regulations;

■ take into account sustainability-related aspects in core business proce-dures, in particular in developing new products, making investment and loan decisions, and fulfilling consultancy mandates;

■ implement sustainability-related aspects in the divisional culture by pro-viding communication and training opportunities to this effect;

■ enter into a dialogue with interest groups on sustainability-related as-pects.

■ Asset Finance & Leasing

■ Communications

■ Compliance

■ Corporate Development

■ Corporate Security

■ Corporate Real Estate

■ Corporate Social Responsibility/ Deutsche Bank Foundation

■ DB Research

■ DWS

■ Global Banking–Specialized Financing

■ Global Sourcing

■ Global Transaction Banking

■ Human Resources

■ Investor Relations

■ Legal

■ New York, 60 Wall Street

■ Public Sector

■ Private and Business Clients

■ Private Wealth Management

■ Risk Management

■ Structured Trade & Export Finance

■ Sustainable Development

Business and Corporate Center divisions integrated into the Sustainability Management System:

Group audit

External audit■ Focus on financial data and supporting reviews; conducted by KPMG worldwide

Internal audit■ Regular, risk-oriented, independent review of operational and business functions; reports to Senior and Executive Management, the Management Board, and the Audit Committee

Sustainability audit

External audit■ Certification of the Sustainability Manage- ment System by Det Norske Veritas

Internal audit■ Annual monitoring of direct and indirect sustainability and environmental impact; reports to Senior and Executive Manage- ment as well as to the Committee of Sustainable Development

Monitoring mechanisms: sustainability audit

As part of Total Quality Management, all di-visions regularly analyze sustainability-rele-vant aspects of their business activities with the goal of implementing improvements in line with DIN EN ISO 14001. In order to facil-itate this procedure, the sustainability man-agement team annually conducts internal audits with the leaders and the Sustainabil-ity Compliance Officers of the integrated divisions and departments.

Organization and functionsThe implementation and maintenance of the Sustainability Management System is the responsibility of the Management Board and in particular of Tessen von Heydebreck in his role as Chief Administrative Officer.

The responsibility for acting sustainably and in line with the System is passed on to the lower management levels top-down. Hanns Michael Hölz, Group Compliance Officer for the Sustainability Management Sys-tem, is responsible for the global strategy, coordination, implementation, and development of the System. Mr. Hölz is the head of the Sustainable Development department, which forms part of the Corporate Social Re-sponsibility division. The Committee of Sustainable Development tackles cross-divisional tasks concerning the further development of the system. It meets annually in order to exercise its steering functions and make de-cisions, and consists of managers from across Deutsche Bank.

Internal communicationRaising awareness, increasing knowledge, and learning from best prac-tice—these are the key goals of our communication efforts concerning the Sustainability Management System.

In 2005 we■ regularly informed staff in Corporate Center and operative divisions on

the Bank’s commitment to sustainability;■ organized an interactive workshop for the departmental Sustainability

Compliance Officers;■ explained the Sustainability Management System to new apprentices

in Germany;■ provided an updated version of our brochure “Acting Sustainably” to

Deutsche Bank’s clients and staff in all branches;■ regularly published sustainability-relevant information on the intranet

and in the Bank’s internal CSR newsletter;■ included information on the Sustainability Management System in the

information package handed out to all new Bank employees.

Management BoardResponsibility for Sustainability Topics

Corporate Center

CIB BusinessSupport Functions

PCAM BusinessSupport Functions

Mem

bers

The Deutsche Bank Sustainability Management SystemOverview of organization and functions

Sustainable Development

Group Compliance Officer for the Sustainability Management System

Com

mittee of

Sustainable D

evelopment

6

Chapter Header 7Acting Sustainably 7

Implementing a group-wide sustainability concept is becoming ever more important in the face of global competition. Acting with sustainability in mind is not just an issue of altruism. Scientific facts and knowledge about the existing natural resources and climate change, a more vocal political debate, and initiatives such as the UN Global Compact make more and more companies realize that they have to play an active part in ensuring that the global economy remains on a sustainable path. They also under-stand that acting sustainably results in competitive advantages: as produc-tion procedures become more efficient and cost-effective, innovative prod-ucts are developed that may give them access to new markets, and the companies become more attractive for highly qualified new employees.

If an international organization plans to prove it-self as a responsible corporate citizen, it will have to take into account the effects its business activ-ities have on the environment and on people. The industrial sector may start with consuming few-er resources for its production activities, but this opportunity is not the same for the finance sector. Nevertheless, taking into account sustainability-re-lated aspects in strategic and operative decisions may give financial institutions an important edge in their core business activities such as lending, investment, and advisory activities. Using funds in line with sustainability criteria helps to promote future-oriented or particularly advantageous proj-ects and ideas, as well as helps to reduce the risk that either the bank or financial investors lose their capital due to ecological or social dangers, or even suffer reputational damage.

Moreover, rating agencies increasingly use sus-tainability indicators in their capital-market-oriented company assess-ments. Among other things, criteria such as corporate governance, the treatment of staff, and the availability of sustainability-oriented products play a major role in the evaluations. Credit risks, reputational damage, product innovations, and the results of such ratings directly affect a com-pany’s value. That is why acting sustainably is not just a PR issue for Deutsche Bank, but part of its core business—an essential contribution to the company’s success and to the sustainable development of the envi-ronment and society as a whole.

Deutsche Bank Mission Statement on Sustainability

■ We believe sustainability means future viability—with the aim of ensuring future generations enjoy a healthy environment as well as stable economic and social conditions. We are committed to this guiding principle.

■ Taking sustainability into account serves to secure our long-term corporate value. Sustainability is an integral component of our business decisions. We go beyond legal requirements in taking into account social, ethical, and ecological aspects in our everyday business.

■ We review and continually improve our everyday work procedures according to sustainability-related criteria.

■ We are committed to ensuring our staff members enjoy a healthy work environment, with legal requirements being an absolute minimum in this respect. As far as possible we use the most eco-friendly technology with the aim of preserving natural resources.

■ We regularly monitor our operations and goals.

■ We also believe that sustainability implies a clear commitment to developing sustainable concepts. Our proactive cooperation and solution-oriented dialogue with international partners reflects our sense of global responsibility.

Acting Sustainably An obligation and a challenge

Shareholders

Investment in renewable energies The fact that non-renewable energy sources, such as oil, coal, or gas, will run out one day has been an important topic for Frank Hasselwander ever since his days as a student. Hasselwander, who works in the Bank’s Asset Finance & Leasing department, has many oppor-tunities to support the use of renewable energy. Being a father of three, he is par- ticularly concerned about not leaving a wasteland to future generations. While Hasselwander is very interested in the latest technologies and is keen about saving energy in his own private home in Düsseldorf, he would not classify himself as an “eco-nerd.” Economic ef-ficiency remains a central argument for the qualified economist.

“In my vision, global energy needs are met almost completely by renewable energy sources, such as wind, sun, or biomass.”

Frank Hasselwander

Olive oil—there is hardly another natural product which evokes such a range of positive associations. Olive oil is healthy and immediately calls to mind an idyllic Mediterranean landscape. In a number of regions, it is the main source of income, and it just might even be the next bio-fuel of the future. Olive cake, i.e. the residue which remains after pressing, can be a source of electrical, heating, or cooling power. This means that the olive-oil-producing countries would be able to resolve several problems at once. The waste generated by the pressing procedure pollutes ground water and is a black spot on the picture of scenic olive groves. Burning the energy-rich olive cake helps to avoid heaps of pomace, and reduces the consumption of expensive fuels such as oil or natural gas. Putting this

technical possibility into practice—that is what Frank Hassel-wander, head of the Renewable Energy team of Deutsche Bank’s Asset Finance & Leasing (AFL) department, is cur-rently working on.

A pilot project, which is supported by the European Union, was kicked off in Greece at the end of 2005. The aim is to develop a biomass plant for olive waste by the end of 2007. The project is to set standards in the areas of waste dis-posal and exhaust gas treatment, thus serving as a blue-print for projects in other EU countries. In fact, 80% of the global olive oil output (more than two million tons) are pro-duced within the EU. Deutsche Bank’s role is to give finan-cial support to the project until the construction permit is granted and, once this is the case, to find investors to fi-nance the plant.

Drawing on its expertise in the financing of big-ticket transactions—from aircraft to motorways, from real estate to film projects—the Bank’s Asset Finance & Leasing department has extended its activities to the area of re-newable energies and has established its reputation as a problem solver over the past ten years. It will find innovative financing solutions, super-vise a project commercially, get a construction permit, monitor energy bills, or take decisions on investments for repairs. “We are interested in getting the projects implemented, not just in financing them,” says Angela Hasenfuss, Managing Director with Asset Finance & Leasing, and thus ex-presses the underlying philosophy of her department in a nutshell.

Deutsche Bank’s commitment to the issue of renewable energies started with a wind power fund, which was directed at sustainability-oriented in-vestors. Today, wind energy is an important topic for the Bank’s experts; so far, 27 such projects have been realized. A recent example is the construc-tion of an offshore wind power park in the Baltic Sea, which will generate about 300 megawatts per year. Deutsche Bank has supported this proj-ect in a joint venture since 2002. By 2008 at the latest, the wind turbines installed north of the German island of Rügen are to generate as much

Investment in Renewable EnergiesCombining sustainability and shareholder value

Coal18.1%

Energy consumption: Germany 2005 Renewable energies ahead of nuclear energy for the first time

Oil37.7%

Renewable energies

6.4%

Total energy consumption in Germany: 2,936 TWhSource: Bundesverband Erneuerbare Energien e. V. (German Renewable Energy Federation)

Gas32.1%

Nuclear energy5.7%

The fuel of the future: The EU supports a biomass plant for olive waste in Greece

10

power as a small nuclear power plant. With a total investment of more than EUR 500 million, “Ventotec-Ost” is a very ambitious project. The experts of our Asset Finance & Leasing department hope to gain globally useful know-how from this participation in one of the very first offshore projects in Germany. After all, wind energy is cur-rently the renewable energy source with the strongest global growth rates.

AFL has observed a similar boom in growth rates in the area of solar energy. Financing solar power projects has therefore become a promising area of business for Deutsche Bank. One example is a big-ticket project in Spain, where, together with a German project developer, Deutsche Bank is realizing a solar power plant with a capacity of 20 megawatts—an impressive volume for a photo-voltaic plant.

From wind energy to solar power, energy generation from biomass or bio-gas: Due to the significant price increases for crude oil and natural gas, and thanks to a number of government incentives, it now makes eco-nomic sense to invest in projects which were once too costly or not ef-ficient enough. That is good news not only for the environment, but also for shareholders, who expect that Deutsche Bank’s activities yield mar-ket-oriented returns. Renewable energies are just another example sup-porting the fact that sustainability and shareholder value are not at odds with each other, but simply two sides of the same coin.

Renewable energy: Energy sources which are continuously renewed by natural pro-

cesses ■ Asset Finance & Leasing: Deutsche Bank’s global team for advisory, arrangement,

and financing services for big-ticket durable goods ■ Deutsche Bank memberships and

mandates in this context: Arbeitsgruppe “Emissionshandel zur Bekämpfung des Treibhausef-

fektes” (AGE; working group on emissions trading), dena—Deutsche Energie-Agentur (German

Energy Agency), Forum für Zukunftsenergien e. V., Hessische Klima-Partner ■ Forsa survey,

April 2005: 87% of those polled said that the current support for renewable energies should

be maintained or even increased. The main arguments were environmental protection (44%)

and the desire to become independent from exhaustible energy sources (29%) ■ Information:

www.db.com/afl; www.dil.de; www.deutsche-bank.de/sustainability

Deutsche Bank has financed 27 wind power projects so far: Angela Hasenfuss (left) visits a plant

Construction of a plant in Trinwillers-hagen, Mecklenburg-West Pomerania

The renewable energy team: F. Hasselwander (right) and colleagues

Shareholders 11

Long-Term Brand Value Social responsibility and brand attitude

Deutsche Bank is a European global powerhouse ded-icated to excellence, constantly challenging the status quo to deliver superior solutions to its demanding clients. “A Passion to Perform”—this is the way Deutsche Bank does business and it has become the benchmark for everything that is done on Deutsche Bank’s behalf. Founded in 1870 to support the internationalization of trade, Deutsche Bank has a long-standing tradi-tion and has developed into a leading global invest-ment bank, with a strong and profitable private clients franchise. As an institution, Deutsche Bank is in the focus of public limelight and is faced with the chal-lenge to authentically and reliably deliver according to the high expectations of shareholders, clients, staff, and the public at large.But beyond results and shareholder value, Deutsche Bank has always been at the forefront of developing ground-breaking social and cultural initiatives. These are not only an integral part of our corporate culture, but also convincing testimonials of our underlying at-titude. Our numerous Corporate Social Responsibility

initiatives offer “inspiration and perspective” and thus support our busi-ness. They help people to identify with the Bank and have made Deutsche Bank more tangible and approachable. Last but not least, they have add-ed a new meaning to the claim “A Passion to Perform.” It is our brand and its four pillars that serve as a first point of reference for single initiatives (see chart).

Pursuing ExcellenceDedication to excellence is what Deutsche Bank is all about. Being able to attract top talent, to make staff members competent sparring partners for modern, demanding clients, to support employees in becoming convinc-ing leaders in their communities, and to ensure their loyalty in the long run—these are the prerequisites for our continued business success. In our Corporate Social Responsibility programs, we aim to contribute “more than money.” Whether our employees do voluntary work as mentors, pass on their professional know-how as teachers in schools, are “hands-on” helpers in community centers, or participate in other volunteering proj-ects (see pp. 58 and 84 et seq.), they always demonstrate that “A Passion to Perform” is in fact our leitmotiv—not just in our interaction with our clients, but also in dealings with other stakeholders.

Leveraging Unique InsightsAs a European player founded to facilitate trade relations with interna-tional markets, Deutsche Bank has always believed in valuing differ-ences and in leveraging the insights and expertise a diverse workforce is able to generate. Impressive evidence of our global diversity is our pres-

12

75

50

25

0

Perception of Deutsche Bank as a responsible corporate citizen (internal data)1

01/04

1 Source: Representative online survey among Deutsche Bank staff

2 Peak directly after a Deutsche Bank donation for the tsunami victims was announced

■ Globally■ Germany

01/0601/052

The pillars of our brand

Leveraging Unique Insights

Delivering Innovative Solutions

Building Long-Term Relationships

Pursuing Excellence

6466

38

51

5853

%

Mitarbeiter 13

ence in 73 countries, our staff from 130 nations, our multinational top management, various employee networks and minority initiatives (see p. 36), as well as our social commitments aimed at helping people to realize their own potentials and at promoting international understand-ing. Highlights of specific initiatives include the ongoing socio-political discussions initiated by the Alfred Herrhausen Society for International Dialogue (see p. 80 et seq.), the opening of new cultural experiences to children and teenagers within the initiative KINDER ZUM OLYMP! (see p. 66) or the “I Have a Dream” global internship program targeted at minority students (see p. 36).

Delivering Innovative SolutionsInnovation—the third pillar—is another core dimension of the Deutsche Bank brand promise. It is by challenging the status quo and by leverag-ing the intellectual capital of our global staff members to deliver superior client solutions that we have become the undisputed leader in our home market and an internationally recognized pioneer in the area of product innovation. Numerous awards are testimonials of our success, among them the IFR “Bank of the Year” Award, which we received for the second time in just three years. A few examples for our ground-breaking innova-tions are the financing of renewable energies (see p. 8), the underwriting of the microfinance consortium, a new fund for the creation of market-based solutions to combat poverty (see p. 38) or the db StudentenKredit, which is our private client business’ response to new socio-political devel-opments in the German home market (see p. 20).

Building Long-Term RelationshipsReliability and eye-level dialogue define the fourth pillar of Deutsche Bank’s brand platform. For shareholders, our stock is a value investment; our employees are justly proud of working for a top global player; and to our clients, Deutsche Bank is a trusted, long-term business partner. With our corporate social responsibility programs, we go the extra mile to sus-tainably strengthen the communities in which we operate: regionally, by supporting a number of community development projects, and globally by our commitment to the UN Global Compact and the United Nations Envi-ronmental Program (see p. 48 et seq.).

Deutsche Bank’s potential to create sustainable added value highly de-pends on the competence, the innovativeness, and the passion of our em-ployees, who bring the brand to life on a daily basis. Fostering the talent and the potential of the individual is also at the heart of our corporate so-cial responsibility initiatives. The pillars of our brand thus build a consistent frame of reference and set out the cornerstones not only of our business initiatives, but also of our corporate social responsibility program.

Shareholders 13

14

Corporate Governance: Efficient corporate governance is a part of Deutsche Bank’s identity. The fundamental basis is provided by the German Stock Corporation Act and the German Corporate Gover-nance Code, which was extended to include recommendations to strengthen the independence of the Supervisory Board in June 2005. As our share is also listed on the New York Stock Exchange, we are also subject to relevant U.S. capital market laws as well as the rules of the Securities and Exchange Com-mission (SEC) and the New York Stock Exchange (NYSE). Clem-ens Börsig, responsible for corpo-rate governance on the Manage-ment Board until taking over as chairman of the Supervisory Board in May 2006, supervised the im-plementation of and compliance with the corporate governance standards, and reported to the Su-pervisory Board on these issues on March 18, 2005.

Our corporate governance ensures the responsible and value-driven management and control of Deut-sche Bank. Four elements are es-sential to our approach: good rela-tions with shareholders; effective cooperation between the Manage-ment Board and the Supervisory Board; a system of performance-related compensation for manag-ers and employees; and transpar-ent and early reporting.On October 27, 2005, the Manage-ment Board and the Supervisory Board of the Bank made the an-nual declaration of conformity as foreseen by Sec. 161 of the Ger-man Stock Corporation Act. This declaration says that the rec-

ommendations of the Corporate Governance Code were and are observed, with the only excep-tion that there has been a direc-tors’ and officers’ liability insur-ance policy without deductible for the members of the Management Board and the Supervisory Board. This is a blanket insurance, which covers numerous employees in Germany and abroad. A deduct-ible is unusual abroad, and more-over, it does not seem to make sense to differentiate between the members of the Bank’s decision-making bodies and its employees in this respect. Moreover, we also comply with most of the codex’s suggestions.

The high standard of our corporate governance has been assessed by independent national and interna-tional institutions, and we have al-ways been ranked at the top. We will continue to regularly examine and, if necessary, adjust our cor-porate governance with respect to our own experiences, legal re-quirements, and newly developed national and international stan-dards.

For our detailed Corporate Gov-ernance Report for 2005, please see the separate Financial Report (pp. 172 et seq.). Moreover, this re-port and other documents on cor-porate governance, such as the terms of reference for the Man-agement Board, the Supervisory Board and its Committees, the Code of Conduct for staff, and the Code of Ethics for Senior Finan-cial Officers, are available on the Internet: www.deutsche-bank.com/ir.

Further Topics

Sustainable risk management: Considering our broad range of business activities, it is necessary to effectively identify, measure, aggregate, and monitor risks; and it is also necessary to ensure ad-equate capital coverage. In doing so, we distinguish between numer-ous types of risks, such as credit, market, liquidity, business, and op-erational risks. These risks may af-fect the reputation and, in turn, the success of the Bank.

In our business we consider and weigh all relevant criteria in the framework of our risk manage-ment in order to make sure that we take responsible decisions from both business and sustainability-oriented vantage points. We have therefore created a framework of risk principles and guidelines, or-ganizational structures, and pro-cedures to measure, monitor, and steer risks. The system is adapted to the activities of the individual Bank departments. Obviously the Bank complies with all legal provi-sions; in addition, we observe the World Bank Standards, the OECD guidelines for multinational com-panies, and embargoes. We also abide by the ten principles of the UN Global Compact and the UNEP principles (see p. 49). Our internal, global “New Client Adoption Pro-cedure” (“Know your customer”) and other global guidelines such as the “Group Reputational Risk Management Program Policy” un-derline the importance of assess-ing sensitive deals, activities, and transactions. Our global group pol-icies for lending (for example the so-called “Credit Directives”) in-clude social, ethical, and ecologi-

cal factors. For example, the “Credit Directive No. 4” states that Deut-sche Bank will not participate in any financing activities that we believe will entail significant dan-gers for the environment or for so-ciety.

The Group Credit Policy Commit-tee, which is the most important sub-committee of the Group Risk Committee and is chaired by the Chief Risk Officer, is informed bi-annually about policy decisions, which were taken in addition to the lending decision and may—de-pending on the sensitivity of the transaction—foresee the involve-ment of the Group Reputational Risk Committee or the Manage-ment Board. The “Credit Direc-tives” are reviewed annually and, if necessary, revised and adopted by the Group Credit Policy Com-mittee.

Our approval procedures, which have been established for years, require detailed analyses of trans-actions and activities, not least from a sustainability-related van-tage point. These analyses may result in restrictions or even a re-jection of a loan which would be acceptable with respect to other criteria. We take each decision in-dividually and consider the social environment and the reputation of the business partners involved.Going beyond each individual case, Deutsche Bank’s credit port-folio is broken down into industry sub-portfolios. Our expert teams regularly prepare reports on these industries, which include com-prehensive analyses of the op-portunities and risks involved in

the relevant industries and credit portfolios. These reports are pro-vided to the risk committees for approval.The reports will also include social, ethical, and ecological topics for the industries, which—depending on the assessment and expertise of the experts—will be weighed individually and taken into account in the decision-making process.

For more information on the princi-ples, organization, categories, and tools of our risk management, please see the detailed Risk Re-port in our Annual Review 2005 (available as download at www.deutsche-bank.com/05).

Export financing: We consider en-vironmental issues when financing export orders, for example. A de-tailed customer and project an-alysis precedes any lending de-cision. In addition to the usual credit risk examination, which in-cludes, among other things, an as-sessment of the customer’s cred-itworthiness, we require that the effects of large-scale projects (for example on the environment) are assessed.

Shareholders 15

Compliance Deutsche Bank’s Compliance and Anti-Money Laundering Program

As an international financial services company, Deutsche Bank faces a global regulatory environment of ever increasing complexity—both in the volume of applicable laws, regulations, and standards, as well as in the frequency of regulatory change at both the national and international levels. The Bank complies, among other things, with the OECD directives for multinational companies including the recommendations of the Finan-cial Action Task Force on Money Laundering (FATF); the recommenda-tions and standards of the Basel Committee on Banking Supervision; the new provisions of the third EU Anti-Money Laundering Directive; and the Wolfsberg Anti-Money Laundering Principles, which were adopted by twelve international banks.

The Bank’s Compliance and Anti-Money Laundering (“AML”) Program assists the Bank in managing its compliance risk, i.e. the risk of legal and regulatory sanctions; financial and reputational losses which the Bank may experience as a result of failing to comply with applicable laws, reg-ulations and standards. In addition, the Bank’s AML Program protects the Bank against money laundering, terrorism and other financial crimes.

Core Responsibilities of the Compliance Department

The Compliance Department has certain core responsibilities. These responsibilities include the following:

■ providing advice to the Bank’s business units on applicable laws, rules, and regulations as well as supporting the business units in the implementation of these rules;■ codifying and communicating global and local compliance principles, standards, and procedures;■ conducting surveillance and monitoring of compliance standards, such as monitoring dealings by the Bank, its employees, and clients;■ supporting the Bank’s information barriers, i.e., Chinese Walls; and ■ providing employees with regular training and education on applica-

ble rules and regulations.

To ensure that Compliance can effectively carry out its responsibilities, the Department and its management are independent of all business units within the Bank. There are more than 600 Compliance staff worldwide. 120 employees alone—headed by two AML officers—support the AML Program, which costs the Bank more than EUR 30 million annually. Highly sophisticated filter and monitoring systems help to scrutinize new clients, existing accounts, and current transactions. Every day the Bank opens about 8,000 new accounts. It manages more than 20 million accounts worldwide and transfers about EUR 1 trillion in more than 250,000 trans-actions daily.

16

Mitarbeiter 17

In order to further its core responsibilities, including increasing aware-ness of compliance-related issues and helping promote ethical business conduct, the Department has developed a number of training and com-munication measures. For example, “Tone at the Top” training describes the supervisory responsibilities of senior managers. Almost 3,000 senior managers took part in the training sessions in 2005. Moreover, a series of modules on fundamental Compliance principles was developed for all Bank employees.

In addition, Compliance coordinates the implementation of a global pro-gram for the management of reputational risk. This program, launched in 2005, includes consistent standards for the identification, escalation and resolution of reputational risk issues which arise from transactions with the Bank’s clients.

Shareholders 17

In addition, Deutsche Bank obtained ratings by Ethical Investment Research Service (EIRIS)/imug investment research and Core Ratings in 2005. As Stock at Stake merged with VIGEO in 2005, a Stock at Stake rating was not produced.

Sustainability ratings: In 2005, we saw an increase in the number of queries by rating agencies with a focus on sustainability issues. These rating agencies assess the success of a company mainly on the grounds of corporate gover-nance and the role that ecological, social, and ethical factors play in internal procedures and decision-making processes. The results are

part of our “business case” for sus-tainability. They serve as a point of orientation for us and our stake-holders: shareholders, clients, em-ployees, and society as a whole. Last year, for example, Deutsche Bank improved its standing in the very important “sam” rating (the as-” rating (the as-”sessment basis for the Dow Jones Sustainability Indices) from 64 to 69 percent. In all three categories—

economy, ecology, and social is-sues—we are considerably above the industry average and rank among the best ten percent. Rating degradations, such as the down-grading by oekom research (from B- to C+), are a signal to start a dialogue with the responsible de-partments and examine our sus-tainability management for poten-tial improvements.

Rating agency

sam (2005)

Vigeo (2005)

SiRi Corporate SustainabilityRating (scoris) (2005)

scoris DAX-30 SustainabilityRating (2004)

oekom research AG(2005)

Stock at Stake (2004)

Deutsche Bank score

69 (out of 100) Breakdown:Economic dimension: 81Ecological dimension: 57Social dimension: 67

Breakdown (out of 100):Human Resources: 36Environment: 46Customers and suppliers: 50Corporate governance: 52Community involvement: 78Human rights: 59

65.6 (out of 100) Breakdown:Business ethics: 73Community involvement: 64Corporate governance: 75Customers: 65Human Resources: 57Environment: 68Suppliers: 71

64.5 (out of 100)

C+(on a scale from A+ to D-)

Breakdown (out of 6): Internal social policy: 4Environmental policy: 3.4External business policy: 2.9Ethical/economic policy: 2.5

Average result forthe industry/sector

The average result for 96 surveyed banks was 48 out of 100.

The average result for 49 surveyed financial services providers was 48.2 out of 100.

The average result for 30 surveyed companies was 56.9 out of 100.

The average result for 60 surveyed financial services providers was C.

Deutsche Bank ranking

Deutsche Bank among the leading 10 percent.

40 banks were surveyed; Vigeo does not provide a ranking.

SiRi does not provide a ranking.

Rank 13 among the 30 DAX companies.

Rank 10 out of 60financial services providers.

21 European banks were surveyed; Stock at Stake does not provide a ranking.

18

Sustainability indices: Sustain-ability is a business case for Deut-sche Bank. Our internal procedures and business decisions are based not only on economic, but also on ecological, social, and ethical

factors. Acting sustainably thus makes an additional contribution to the Bank’s economic success. It is therefore of high importance that our stock is listed in indices which include only ecologically

and socially responsible compa-nies. In 2005, our stock continued to be included in the sustainability indices that are important to us.

Listing of Deutsche Bank in the following indices

Dow Jones Sustainability World Indices (DJSI World)DJSI WorldDJSI World ex. Alcohol, Tobacco, Gambling,Armaments, and Firearms

Dow Jones STOXX SustainabilityIndicesDJSI STOXXDJSI STOXX ex. Alcohol, Tobacco, Gambling,Armaments, and Firearms

DJSI EURO STOXXDJSI EURO STOXX ex. Alcohol, Tobacco, Gambling, Armaments, and Firearms

FTSE4GOOD IndicesFTSE4GOOD Europe Index (EUR)FTSE4GOOD Global Index (USD)

Ethical Index EuroEthical Index Global

ASPI Index(Advanced Sustainable Performance Indices)

Overview

■ Index family established in 1999

■ “Best in class” approach: the 300 leading companies in terms of sustainability in each

sector which are listed in the Dow Jones Global Index

■ Based on a sustainability-oriented corporate rating by SAM Group on the grounds of economic, ecological, and social criteria

■ Established in 2001

■ Listing of European Sustainability Leaders: the leading 20 percent in terms of sustainability criteria from the Dow Jones STOXXSM 600 Index

■ Also possible for the Sustainability Leaders in the Eurozone (DJSI EURO STOXX)

■ Index family established by the FTSE in London in 2001 on the basis of a rating by EIRIS/imug

■ Lists companies which focus on corporate social responsibility

■ Criteria: good stakeholder relationships, realization of sustainability principles,

observation and support of human rights

■ Disqualification criteria are e.g. production of tobacco or weapons, ownership or

running of nuclear power plants

■ Offered as benchmark for socially responsible investments by E. Capital Partners S.P.investments by E. Capital Partners S.P.investments by E. Capital Partners S.P A.

■ Include 150 European or 300 global companies which meet exemplary standards in terms of social and ecological responsibility

■ Established in 2001 by VIGEO

■ Consists of the 120 leading companies listed in the DJ EURO STOXX

■ Five inclusion criteria: social commitment; corporate governance; client and supplier relationships; health, safety, and environ-

mental performance; staff and international labor law

Deutsche Bank listed since

1999 (since establishment of the index)

2001(since establishment of the index)

2001(since establishment of the index)

2002

2001(since establishment of the index)

Shareholders 19

“I wish that first-rate education could be available to everybody— independent of the financial resources of each at hand.”

Eylem Sahan Clients

db StudentenKredit Her dream job: It should have something to do with people and money, and ideally be with a bank. Eylem Sahan knew early on what she wanted. Today, the 22-year- old senior customer advisor works at the Hamburg branch of Deutsche Bank and is responsible for the customer seg-ment “students.” This includes granting student loans. She says she has “great respect” for young people who are will-ing to go into debt in order to qualify for their dream jobs. Eylem Sahan enrolled in a bank academy program (a vocational training institution) and had to work hard for her own education. That is why she puts her heart into helping students attain the means to achieve their goals.

22

On the Path to GraduationAdvice and financing opportunities for students

Compared to other countries, the num-ber of university graduates in Germa-ny is considerably below the OECD average. Disproportionately few peo-ple from the lower social strata go to college. Government spending on ed-ucation—the traditional source of fi-nancing for the sector—is declining. Students study longer because they have to work to pay their expenses. Additional financing opportunities for students are necessary in order to turn these trends around and make an ac-ademic education available to more people.

Deutsche Bank responded to this challenge in 2005. We were the first German retail bank to offer students from all financial backgrounds a loan that covers tuition fees and living

costs. In contrast to other traditional loans, the Bank does not demand any financial collateral. “If the credit check is OK, all students have the oppor-tunity to study without having to worry about their daily allowances— regardless of the subject they want to pursue and the financial situation of their families,” says Hamburg-based customer advisor Eylem Sahan. The Bank relies on the students’ own hard work and determination to en-sure that the loan is repaid after graduation.

Deutsche Bank and the students therefore agree on individual “study plans” and periodic checks to ensure that the plan is adhered to. The fi-nancing needs for the university courses are individually calculated. There-fore, it is important to find a balance between current needs and later debt—after all, excessive financial burdens are of no use to either the stu-dents or the Bank.

“Only two years ago loans to students were not in demand,” says Dr. Eve-lyn Damiani, who is responsible for student banking with Deutsche Bank. This attitude has changed considerably over the past few months, as a representative “forsa survey” commissioned by the F.A.Z. Institute and Deutsche Bank showed in July 2005. According to the survey, long-term financial dependence on parents is now regarded as a larger burden than being in debt after graduation due to a student loan.

Even though Deutsche Bank already had more than 300,000 student cus-tomers (a market share of about 15 percent in this customer segment in Germany), it created new initiatives to approach the target group in 2005.

Deutsche Bank’s db StudentenKredit

(“db student loan”) helps to cover tuition

fees and living expenses. It can be bro-

ken down into three phases: During the

first phase up to EUR 800 are paid out

monthly for a maximum of five years.

The maximum loan including interest—

the initial effective annual rate as at

March 2006 is 5.9 percent—is limited to

EUR 30,000. After graduation the sec-

ond phase starts. No repayments are

due for up to 12 months after the stu-

dents receive their diplomas. At the be-

ginning of the third and last phase, the

Bank and the graduate sign a repayment

agreement with a lifetime of up to 12

years and very favorable conditions. Any

interest payments are deferred until the

beginning of the repayment phase. Ex-

ceptional repayments can be made at

any time during the first two phases

or with a notification period of three

months during the third phase.

db StudentenKredit (db student loan)

Student meets bankers: Workshop at the Ruhr University Bochum

23

In a workshop with students at the Ruhr University Bochum in summer 2005, 73 young Deutsche Bank pro-fessionals learned about the demands and needs of the potential customers. “Many Bank employees had unrealis-tic ideas about student life and about the things that are important to stu-dents,” says psychology professor Dr. Heinrich Wottawa, who chaired the workshop. “The main issue was to get to know students’ ideas and to recog-nize and correctly interpret their sig-nals.” The workshop quickly showed that both students and bank profes-sionals were able to learn a lot from each other.

Deutsche Bank’s new range of prod-ucts for students’ financial needs has been on offer since September 2005, which corresponds to the beginning of the winter term 2005/06. It includes everything from the db Studienstart-Paket (“db university package”), cred-it cards, and the db StudentenKredit (“db student loan”), to putting up the security deposit for rental units. Spe-cially trained advisors are now avail-able to students and young profes-sionals in 73 selected branches in university cities.

db Studium & Finanzen: The comprehensive financial and consulting package for students

and graduates includes, among other things, the db StudienstartPaket, the db StudentenKredit,

and the db BerufseinsteigerPaket ■ Information: www.deutsche-bank.de/studenten

Student advisors in 73 branches: Eylem Sahan (second from right) and colleagues

“Students want to be taken seriously as customers,” says Lars Grabowski, advisor in Bochum

Clients

24

Discretionary portfolio man-agement with sustainable in-vestments: Since May 2005, Pri-vate Wealth Management (PWM) Germany has offered discretion-ary portfolio management on the basis of sustainable investment opportunities. “Our investors can choose to have their assets man-aged on the grounds of ecological, social, and long-term economic cri-teria,” explains Johannes Baratta, head of PWM Germany. A spe-cialized team of PWM portfolio managers relies on the leading Dow Jones Sustainability Indices,* which are based on the research of the Swiss SAM Group (Sustain-able Asset Management). This type of discretionary portfolio manage-

ment allows customers to include their own individual restrictions in the investment guidelines, depend-ing on their personal values.

Ethical investment has a longer tra-dition in the U.S.—the situation in Germany is different. While invest-ment in sustainable retail funds has roughly tripled since 2002, the mar-ket share remains at only about one percent in Germany. There is there-fore considerable potential for im-provement, in particular among ec-

clesiastical institutions, foundations, pension funds, and philanthropi- cally oriented private investors.

According to a recent study of the Zentrum für europäische Wirt-schaftsforschung (ZEW, Centre for European Economic Research), the risk-weighted yields of sustaina-bility indices do not deviate from those of traditional benchmark in-dices. This is confirmed by a com-parison between the performance of the Dow Jones Sustainability World Index and the MSCI World Index (see chart). In the medium to long run, companies that han-dle resources responsibly should do even better than others. PWM Germany has established itself as

a major player in the German mar-ket for sustainable investment, and plans to improve its position fur-ther during 2006. Advisors have been briefed on the issue, and the range of products will be broad-ened to include sustainability-ori-ented third-party mutual funds. The sustainability issue will also play a larger role in the communication with the public, both in press and customer relationships.

Sustainability-oriented funds issued by DWS: In addition to numerous measures and initiatives in which Deutsche Bank puts the sustainability concept into prac-tice, DWS, an affiliate of Deutsche

Bank Group, offers products that cater to different investors’ rising interest in sustainability issues. In particular, the DWS Sustainability Invest Leaders Fund allows inves-tors to shape their investment de-cisions in line with their personal stance on sustainability, thus giv-ing companies an incentive to step up their sustainability activities. At the end of 2005, DWS managed EUR 109.8 billion in assets in Ger-many alone. Sustainability-driven investment in the funds described in the following totaled EUR 501.6 million at that time.

GKD-Fonds: Depending on the market situation and outlook, the investment focus of this mixed fund may shift between fixed- income securities and stocks. In-vestors can donate dividend pay-ments or shares to the Hermann-Gmeiner-Fonds (“SOS Children’s Village,” see p. 64). The fund was first issued in 1976 and received four stars from Standard & Poor’s Ranking (S&P) on the grounds of its excellent performance.

DWS Bildungsfonds: This fund invests in both bonds and stocks, with the focus shifting between bonds and selected stocks from Germany or other Eurozone coun-tries depending on the fund man-agement’s projections. Investors can donate the dividend payments of the fund, which was issued in 1993, to any private sector edu-cation and training centers they want to support.

Panda Renditefonds DWS: This fund supports the World Wide Fund for Nature (WWF), which

Further Topics

Performance comparison

Yield Yield Yield 1 year / 2005 3 years / 2003 – 05 5 years / 2001– 05

DJSI World 25.75% 14.31% p. a. -2.24% p. a.

MSCI World 26.17% 14.13% p. a. -2.30% p. a.

Source: SAM Group, December 31, 2005

* The copyright for the Dow Jones Sustainability World Indices and Dow Jones STOXX® Sustainability Indices rests with SAM Indexes GmbH, Dow Jones & Company, Inc. and/or STOXX Limited. Their use is subject to a license fee. The license hold-ers do not support the financial products based on these indi-ces in any way and do not accept any liability in this respect.

Clients 25

receives part of the front-end fee from DWS. The fund assets are invested in a broad spectrum of fixed income securities. Selected stocks can be added up to a limit of 25 percent. The fund was first is-sued in 1997 and has been awarded four stars by Standard & Poor’s.

DVG Stiftungsfonds: The fund was issued in 2002 and is eligi-ble as a reserve fund. It combines steady returns from bonds and the increased growth potential of stocks. It pursues a flexible in-vestment strategy and aims at long-term price gains and stable returns. The percentage of stocks (30 percent at most) is adjusted flexibly depending on the market outlook. Securities are selected on the basis of sustainability criteria. Despite its comparatively conser-vative investment policy the fund has been awarded three stars by Standard & Poor’s.

DWS Invest Sustainability Lead- ers: This global stock fund focuses on companies that concentrate on a sustainable business model and efficient use of resources, thus cre-ating the preconditions for long-term success.

Product responsibility and con-sumer protection: The Bank’s range of products and services is differentiated and tailored accord-ing to the demands and life situ-ations of the different customer groups. The protection of minors is of particular importance: nei-ther credit nor overdraft facilities are advanced to clients under the age of 18. In 2005, we developed a special product package for stu-dents (see p. 20 et seq.). For older customers we offer a range of products that aim to help this cli-entele to consolidate their wealth and pass it on to the next gener-ation. There are no restrictions to lending to senior citizens aged above 60. We support business clients in financing their business ventures; for example, start-up en-trepreneurs, small entrepreneurs, and freelance professionals can get small loans or start-up capi-tal. Our “basic products”—check-ing accounts, savings products, loans—comply with the legal pro-visions on consumer protection. It is important to us that all agree-ments made with clients are easy to understand. Up-to-date scoring procedures ensure that only those clients are granted loans who will,

in all probability, be able to repay them. We rely on an “early warn-ing system,” which allows us to protect clients from taking out excessive loans. Our investment products are covered by securities trading law. Consumer protection focuses mainly on product distri-bution, product transparency, and the cost structure. In order to en-sure high product quality, new so-lutions—for example in the area of old-age or social security provi-sion—have to pass a new product approval procedure, during which legal and tax issues are examined in particular.

Electronic banking: We offer a number of services to our clients to enable them to smoothly and quickly complete their banking transactions. Electronic banking does not only enable retail banking clients to make transactions any-where in the world at any time, it has also become standard in busi-ness transactions. Data protection is obviously a top priority in this re-spect. The Bank’s systems are rig-orously protected against unau-thorized outside access. A multi-level encryption and identification system ensures that no unauthor-ized persons can access, read, or change protected data. Telephone banking is another way to conduct transactions at any time. This ser-vice is particularly attractive to cli-ents who find it difficult to get to their local branches or cannot use electronic banking due to visual handicaps. In December 2005, we installed new ATMs in a number of airports and Investment & Finanz-Centers, which can be used more easily by blind or visually handi-capped people thanks to additional Braille inscriptions. Moreover, cli-ents can use headphones in order to get audio instructions and infor-mation.

12/94 06/96 12/97 06/99 12/00 06/02 12/03 06/05

50

100

150

200

250

350

300

Source: Datastream, as of February 2006

■ DJ Sustainability World Index

■ DJ World Index

DJ Sustainability World Index vs. DJ World Index(in EUR)

26

Data protection: Data protec-tion aims to guard people’s pri-vacy with the help of provisions concerning the collection, storing, use, and distribution of personal data. The fundamental principle is that everybody should have the freedom to decide who may know what about them at any given time. While the data protection require-ments are harmonized within the

EU, they vary considerably around the world. The Group Data Protec-tion department coordinates all ne-cessary activities to comply with the heterogeneous rules world-wide. For example, it takes action when services are shifted among Deutsche Bank Group divisions or outsourced to third parties; when application platforms for several Group companies and several ju-risdictions are created; or to fulfill documentation and reporting re-quirements. Deutsche Bank does business in 73 countries, and in 35 of which, general data protection laws are in force—and the trend is rising. Moreover, a number of sector-specific provisions have to be complied with. A network has

been implemented in these 35 countries along with others impor-tant to the Bank’s data process-ing activities, in order to discuss and create solutions worldwide. This network consists of regional working groups and a global com-mittee, which cooperates with the Legal, Compliance, and Informa-tion Risk Control departments at Deutsche Bank. Its main achieve-

ment in 2005 was the prepara-tion of a framework agreement on commissioned data processing by service providers and related data transfers. Our employees sign a confidentiality agreement at the time of hiring and partici-pate in training and informational events on data protection regu-larly to ensure proper handling of client data. In Germany, about 100 queries and complaints about data protection are received annu-ally. Many of them are from people who do not want to receive adver-tisement materials from the Bank. About ten percent of the total are complaints, which are examined in detail. In 2005, all justified com-plaints were due to extraordinary,

individual errors. 100 percent of the incidents were resolved with the help of our monitoring and control systems.

dbCERT: All activities to combat cybercrime are coordinated by the Deutsche Bank Computer Emer-gency Response Team (dbCERT). They are responsible for coordi-nating all measures to prevent,

analyze, and mitigate security-rel-evant events, and for conducting forensic IT analyses in the case of security-relevant events. Exam-ples of security-relevant events are viruses, Trojan horse and worm attacks, denial-out-of-service at-tacks, and phishing attacks. Phish-ing is a form of fraud via the Inter-net which has been increasingly attempted over the past year. The term “phishing” is a combination of “fishing” and “password har-vesting.” By proactively and com-prehensively informing our cli-ents along with other protection measures, we have been able to successfully combat this type of fraud.

Q110 – The Deutsche Bank branch of the future in Berlin-Mitte ...... banking has changed since September 2005 (for information please see www.q110.de)

Satisfaction of our private and business clients: Our custom-ers’ satisfaction and trust are our main goals. Guidelines and poli-cies serve as anchors for our em-ployees’ behavior toward our cli-ents. We take customer demands seriously throughout the Bank and take all necessary steps to resolve any problems or inconveniences affecting our clients.

Management of complaints: Most customer complaints are re- solved to the customer’s satis-faction in a personal meeting. All written customer complaints are processed quickly in cooperation with the relevant sales unit and answered in writing. If more time is needed for research, customers will receive a brief written confir-mation of the receipt of their com-plaints. Our quality standards and quality improvement systems (such as support by supervisors, probes, surveys concerning customer satis-faction in general, and satisfaction after complaints) were certified by DQS according to DIN EN ISO 9001 in December 2005. Any improve-ment measures derived from these systems will directly affect cus-tomer satisfaction and customer retainment. A flexible monitoring system for complaints helps us to identify any issues or categories that make up a particularly large number of complaints in our Pri-vate and Business Clients division (PBC). The well-established infor-mation and escalation procedure ensures that particularly sensitive complaints are given preferential treatment. If particular difficulties arise, an improvement procedure will be started within PBC. The is-sues are collected and prioritized, and suggestions for solutions are presented and implemented so that all procedures are continu-ously improved.

Clients 27

In 2001, Deutsche Bank was approached by Saudi Arabia’s largest retail bank, National

Commercial Bank, to create a Shari’a-compliant international equity portfolio product.

Deutsche Bank’s successful investment products platform x-Markets, was the quanti-

tative inspiration for the development of an Islamic outperformance strategy, issued in

note form, public in Saudi Arabia, and traded on the Frankfurt Stock Exchange.

This equity note has strongly outperformed both Islamic and conventional indices across

four geographic regions and has helped to establish Deutsche Bank’s foothold in the

increasingly competitive Islamic finance market.

Today, our mission is to be the world’s leading provider of professional Islamic services

and products that have the same quality, yield prospects, liquidity, and cost efficiency as

our conventional services and products. This ensures that clients can invest with confi-

dence and without compromising their beliefs.

We pride ourselves in progressing the field of Islamic finance in a direction neither our

international competitors, nor regional Islamic players, have yet taken. We have taken a

lead on investing in the necessary infrastructure and resources to make the most com-

plex Islamic transactions happen. For example, Dar Al Istithmar (DI), our joint venture

partnership with the Oxford Centre for Islamic Studies and Russell Wood Limited, is a

highly positioned think tank and research center.

Islamic finance is often simplistically misunderstood to mean that no interest-bearing

transactions may take place between lender and borrower. In fact, the principles of

Islamic finance revolve around the need to ensure commercial parties enter into fair and

transparent transactions, with the activities underpinning those transactions resulting in

actual trade with economic and social benefit. In other words, money itself is merely a

means of exchange for tangible assets, and not a commodity in itself.

Rather than replicating the limited range of products offered by Islamic financiers over

the last thirty years, our approach has been to push the boundaries of what is possible

within the framework of Shari’a (Islamic law). We apply our global resources, across

product lines and industry teams, to create opportunities for Muslim and other ethical

investors to invest in complex structured financial instruments across asset classes, with

virtually unlimited pay-off profiles.

Our unique approach has earned Deutsche Bank Euromoney’s “Most Innovative Islamic

Finance House 2006,” “Most Improved Bank in Islamic Finance 2006,” “Best Islamic

Capital Protected Fund 2005” (Failaka Awards), and “Deal of the Year – Bahrain 2005”

(The Banker).

Islamic Banking

“My dream is that we take on all challenges of life as it is today with courage, with openness and with dedication.”

Henriette Mark

Staff

The db-Mosaic for employment Change opens up new opportunities. That is what Henriette Mark has learned in her years with Deutsche Bank, during which she has worked in a number of very differ-ent jobs. “We have to do everything in our power to ensure that people do not regard themselves as victims of change, but are self-confident enough to forge ahead.” This principle guides Henriette Mark’s work—not only as member of the workers’ council at Deutsche Bank, but also during her spare time, in which she volunteers to help exiled Tibetans in India.

30

Taking Their Careers in Their Own HandsCoaching and training models to actively promote individual careers

When Deutsche Bank announced its intention to shed several thousand jobs worldwide in February 2005, the media and the public response was split. Economists were in favor of the step, which should improve the Bank’s competitiveness and, in turn, strengthen Germany’s position as a financial hub in the long run. However, there was considerable criticism from politicians and the mass media.

Deutsche Bank takes its responsibility towards its employees very seri-ously, and has introduced a number of programs developed by the depart-ment “HR Employment Models” since the late 1990s in order to system-atically support staff who are directly or indirectly affected by job cuts in Germany. When cutting the amount of positions is necessary, we aim to find a solution on the grounds of the employee’s qualifications and his or her track record at Deutsche Bank. For this purpose, the Bank created a new advisory department, the DB JobCenter, which has a range of tools at its disposal to help employees find a job—within or even outside the Bank. “Many colleagues are not aware of their own strengths, qualifications, and expertise,” explains Ralf Brümmer, head of HR Employment Models. “Moreover, most of them have not even thought about preparing for job interviews in the last few years. They get to know themselves better with our help and then make informed decisions about how to deal with the demands of the internal and external job markets.” The first step of the DB JobCenter is to get employees to analyze their current situations, their strengths and weaknesses, and their professional goals. This is followed up by individual coaching. This phase does not only include writing applications and practicing job interviews, but also includes learning active self-promotion. Moreover, the employees and the DB JobCenter counselors discuss any qualification or training measures which may be necessary to reach the professional goals set. HR Em-ployment Models also researches job offers both inside and outside the Bank, and also coordinates transitional jobs. This service is available to all Bank employees in Germany, independent of any immediate need of sup-port. An agreement to this effect was concluded with the staff council in autumn 2005. The Bank offers every employee a “professional fitness package,” valued at several hundred euros. “The goal is to give employees the necessary tools to stay ‘professionally fit,’ thus consistently remain-ing attractive for employers,” explains Brümmer. Change in the banking sector and the labor market as a whole comes in ever shorter cycles, and lifetime jobs are becoming increasingly scarcer. “People should become willing and ready to change jobs,” says Henriette Mark, chairperson of the staff council in Munich.

DB JobCenter: Participants since 2002 Successful job placements: More than 90% of the participants placed within 3 – 9 months

Users of the counseling services 5,300

135 workshops “JobCoaching” 1,150

195 workshops “OrientierungsCoaching” 2,150

Users of the telephone counselingservice 1,800

Workshop “Well prepared for returning to work” 270

Telephone counseling for apprentices who complete their apprenticeship 70

Ralf Brümmer and his team develop innovative concepts to secure employment

Çetin Saltan was one of the first colleagues to use the services of the DB JobCenter. For many years he worked successfully with corporate clients in Aachen, Germany. There had never been a concrete reason to change jobs. He enjoyed the “very good team spirit and interesting and demanding work.” It was a shame that he could not use his knowledge of Turkish culture in his job. “When I heard about the DB JobCenter I knew that this was my chance,” says Saltan. Following an analysis of his skills, he decided that he wanted to go for a new job. He an-swered an internal job ad as head of sales financing. Since January 2006, Çetin Saltan has been working as advisor for Turkish retailers and specialty retailers in Germany with the Private and Business Clients Consumer Finance department.

Deutsche Bank’s employability of-fensive is based on the principle of “sharing the burden”: the Bank organizes and finances these of-fers, and the employers can take advantage of them in their spare time. From Henriette Mark’s van-tage point it is important that the Bank clearly separates between employability offers and training offers for concrete jobs. “The Bank does much more than what it is obliged to do,” enthuses the staff representative. Professor Dr. Jutta Rump from the Institut für Beschäf-tigung und Employability (“Institute for employment and employability”) of the Ludwigshafen University of Applied Sciences says that Deutsche Bank’s activities to support its employees’ employability “set a standard, and not just in Germany.” Scientific research has shown that permanent willingness to change and to accept change is necessary, and that em-ployees have to become entrepreneurs in their own right in order to en-sure that they remain “fit.”

db-Mosaic for employment: An initiative established in 1998 and aimed at developing inno-

vative concepts for securing employability for staff members ■ db-intrajob: A Web-based,

bank-wide, global job market ■ Promotional activities and networks: Initiative “in eigener

Sache,” Initiative für Beschäftigung! (“initiative for work”), Job-Allianz: Berufswelt transparent;

Initiativgruppe Wege zur Selbst GmbH ■ Information: www.career.deutsche-bank.com;

www.in-eigener-sache.de; www.initiative-fuer-beschaeftigung.de; www.selbst-gmbh.de

Professor Dr. Jutta Rump, Head of the Institut für Beschäftigung und Employability of the Ludwigshafen University of Applied Sciences

Henriette Mark, Chairperson of the staff council of Deutsche Bank in Munich

Çetin Saltan, a Deutsche Bank employee, was one of the first to use the new competence analysis

31Staff

32

As a global financial services pro-vider, we develop innovative fi-nancial solutions for demanding clients in 73 countries. Highly qual-ified employees from 130 coun-tries are responsible for our suc-cess. Winning a broad range of talent for the Bank along with pro-moting and developing our em-ployees’ abilities are therefore top priorities.

Education and trainingAs our business becomes ever more complex, the demands on our employees’ qualifications are ris- ing. This is reflected in the average level of education of our staff. The share of employees with a univer-sity degree has risen to more than 55 percent in the last few years.

Cooperation with universities: It is with this in mind that we very much support the introduction of internationally recognized degrees like Bachelor and Master programs at German universities. We expect that a reform of university educa-tion will result in a more practice-oriented curriculum, help to reduce the total time needed to gradu-ate from university, and make it easier to compare the quality of education. We therefore cooper-ate closely with universities and support them, for example, in ac-creditation issues. Our recruiting procedures, trainee programs, and employee training measures are

regularly adapted to graduates’ changing qualifications.

International grants: We run five grant programs for talented stu-dents of ethnic minority in order to support them during their uni-versity studies. Moreover, we offer two grant programs for women at the Chicago Graduate School of Business and London Business School with the goal of getting more women interested in a se-nior management career with the Bank. In addition, we gave out three grants for the European School of Management and Technology MBA program in 2005. However, our activities exceed financial commitment. All grant holders are actively accompanied by a mentor and supported by individual devel-opment programs.

Investing in the training of our staffWe offer numerous opportunities for our employees to further devel-

Further Human Resources Initiatives

*Full-time job equivalent

40

30

20

10

0

Qualification of our employees (in %)*

50

2001 2002 2003 2004 2005

46.1

27.6

49.8

24.4 25.8

51.0

23.825.2

53.4

23.3 23.3 22.8 21.6

■ University degree ■ High school certificate ■ Other school degrees (A-level or equivalent)

55.6

26.3

*Share of employees (headcount)

50

40

30

60

70

20

102003 2004 2005

67.765.4

63.4

*Full-time job equivalent

Number of employeesIn thousands at year’s end*

Regional deployment of our staffTotal of 63,427 at year’s end 2005*

Asia/Pacific11%

Americas18%

Germany42%

Europe (exclud-ing Germany)29%

33

op their professional and person-al skills. All training tools can be found via our Learning Manage-ment System “db Learn,” which offers a uniform electronic plat-form for all Bank employees. It enables staff to plan their individ-ual trainings directly. About 2,300 seminars and other courses can be booked via “db Learn.”

Additional qualification for ap-prentices: Since 2005 our appren-tices have been able to take part in an additional sales qualifica-tion course, for which they are rewarded a certificate upon suc-cessful completion. This training opportunity accompanies the reg-ular apprenticeship, and is cur-rently unique in Germany; it was certified in June 2005 by the Deut-

sches Institut für Normung (Ger-man Institute for Standardization). The program helps the apprentices to improve customer and sales ori-entation, teamworking, and com-munication skills. In addition, they receive detailed professional and product information. More than 90 percent of our apprentices took part in the scheme in 2005.

International trainee programs for university graduates: In 2005, we took on 692 graduates in our trainee programs worldwide. The programs are tailor-made for the needs of each department and are offered in 16 countries and re-gions. The trainees not only gain professional skills, but also take part in a volunteering project for their local communities. In 2005, all

trainees participated in the three-day “Teamwork Challenge,” an initiative which supports schools and community centers, above all in disadvantaged areas.

Knowledge sharing with the public sector: In 2004, the first staff exchange between Bank em-ployees and German civil servants took place, and the program was continued and extended in 2005. This concept calls for senior civil servants and managers of the Bank to swap jobs for several months. In 2005, four of our em-ployees worked in four federal ministries, and in return three civil servants spent several months with the Bank. Continuing in 2006, six other people will take part in the exchange program, and some of them have already started their exchange. In addition, we have extended the program to state au-thorities by including a stay with the Hessian government.

Training for older employees: Demographic development is only one of the reasons why we have started to focus on quali-fication and training measures for older employees. We support the active@work project (www.activeatwork.net)—an EU initia-

Teambuilding and community commitment: In 2005, 692 trainees participated in the teamwork challenges

25 – 34 years: 34.2%

up to 24 years:7.6%

45 – 54 years:19.1%

over 54:4.4%

Age structure of our staff, 2005*

*Number of employees (headcount)

35 – 44 years: 34.7%

Number of training days in 2005 by categories

Business management, finance 77,633 66,052

Leadership and management 10,698 17,067

Personal and team development 22,981 26,146

Corporate culture and orientation 9,272 5,443

Communication and information technology 7,137 7,449

Professional qualifications 736 6,494

Legal framework conditions and compliance 60,371 9,575

Other 699 2,187

Total 189,527 140,413

Participants Training days

Staff

34

tive aiming to develop innovative strategies and alternative em-ployment arrangements to moti-vate older employees to continue working and offer them adequate training.

Leadership and support for our employeesClear demands on our senior management: In 2004 we ad-opted the so-called Leadership Standards, which spell out what Deutsche Bank means by ‘lead-ership’ and what we expect from our managers worldwide. In ad-dition to financial and business success and operational excel-lence, we expect our senior man-agers to consider factors such as the active promotion and support of employees. In order to imple-ment the Leadership Standards successfully and create a uniform leadership culture, we have in-tegrated them into core human resources procedures such as

recruiting and development, ob-jectives setting and performance assessments. Moreover, we intro-duced the Leadership Curriculum in 2005. This is a series of practice- oriented training programs, which help our managers to system-atically improve their leadership skills and thus comply with the demands set down in the Lead-ership Standards. In 2005, more than 1,850 managers participated in the programs, which are of-fered in 18 countries and in five languages.

Promotion of talented employ-ees and junior managers: We offer specialized programs for promising young employees. The measures are tailored to the cur-rent situation of the employee and may, for example, take the form of a coaching or mentoring relation-ship. In 2005, 1,400 employees par-ticipated in these programs.

Creating a work-life balance A future-oriented human resources policy includes taking into ac-count social changes that define the working environment. These include higher labor-market flex-ibility and increased demands on the employees’ (and their families’) willingness to accept change and regional mobility. That is why we offer our employees ways to im-prove the work-life balance. Among them are flexible working-time models such as part-time work or teleworking, i.e. the option of working in the Bank offices or at home. In Germany employees can also shape their working lives by taking part in db zeitinvest, the Deutsche Bank model to reconcile free time, learning, and work. Em-ployees can deposit parts of their regular salary, their bonuses or special payments, compensation for overtime worked, or residual vacation in a personal service ac-count. They can then use the “de-posit” to take time off from work later on—for example in the form of a paid sabbatical or earlier re-tirement without any cuts in pen-sion payments.

Reconciling professional and family life: An important part of the work-life balance is the suc-cessful reintegration of employ-ees after maternity or paternity leave. This means offering flexible working conditions for parents. Our Human Resources profes-sionals and team leaders keep in close contact with the parents

Key figures 2005 2004 2003

Employee Commitment Index 68 68 67

Training (expenses per employee* in EUR) 1,583 1,479 1,298

Apprenticeship programs (expenses in EUR million) 40 42 50

*Number of employees (headcount)

We have been conducting global em-

ployee surveys since 1999. This helps us

to calculate, among other things, the Em-

ployee Commitment Index, which gives

insight into employees’ commitment to,

and identification with, the Bank.

Only one of many diversity-related initiatives (see p. 36): the Deutsche Bank team par-ticipated in the “Walk for Life” and collected donations for out-patient AIDS treatment

35

during their maternity or paternity leaves, and we offer workshops to facilitate restarting work. In excep-tional situations, staff may take unpaid leave of up to six months even if the legal timeframe for ma-ternity or paternity leave has ex-pired. In addition, the Bank offers daycare facilities in Frankfurt, Esch-born, and Leipzig, and supports its employees by a Germany-wide co- operation with the organization “Fa- milienservice” (see p. 37).

Promoting and maintaining em-ployability: Global competition has accelerated change and raised the bar for our employees’ com-mitment and willingness to em-brace change. Preplanned and fixed career plans are an increas-ing rarity. That is why we encour-age our staff to take an active and forward-looking approach to their careers. If it becomes necessary to look for a new job, we support our employees actively with the “db-Mosaic for employment.” In 2005, the Bank was a main driving force behind the German training initiative “In eigener Sache – Fit in die berufliche Zukunft.”

Compensation and benefits for our employees In addition to a broad range of corporate benefits, Deutsche Bank offers its employees a remunera-tion package with fixed and vari-able components. In general, the variable components reflect an employee’s personal contribution to the Bank’s overall success. They depend on the employee’s indi-vidual performance, the financial and non-financial results of the Bank or the division, and his or her position. Managers may receive part of their variable compensa-tion in shares. Under the “Global Share” program, which allows en-titled employees to receive bonus shares, our employees have the opportunity to directly participate in the Bank’s success.

Pension plans: Over the last years we have continuously improved our pension plans in order to open this attractive benefit to as many employees as possible. Moreover, with the increasing importance of performance-related compensa-tion, our employees have the op-portunity to swap cash compo-nents into pension plans.

Compensation plans for staff council members

We have responded to the current discussions about the remuneration for employees on

the staff council. In order to ensure a transparent compensation scheme for full-time staff

council members, we have reviewed our existing principles and established new spend-

ing control mechanisms so that any irregularities are prevented right from the start. For ex-

ample, the spending of all staff council cost centers is monitored and analyzed in monthly

reports, and any incongruities are examined. Moreover, full-time staff council members are

subject to maximum spending limits as well as limits on what kinds of transactions they

can authorize. A separate agreement on bonus payments was concluded in the framework

of the changeover to a discretionary bonus system. It states that any bonuses for full-time

staff council members are calculated on the basis of a uniform, cross-divisional factor,

which reflects the development of the bonus pool in Germany in comparison with the pre-

ceding year. These measures help the Bank as an employer to fulfill the legal accounting

provisions and ensure the integrity of the workers’ representatives.

800

600

400

200

0

Company pension scheme

Health-care

provision

Other benefits

(incl. Global Share)

1,000

Statutory social

security

■ 2004 ■ 2005

873

956

490455

67 67

267243

in EUR m

Staff

Compensation and benefits for our employees

36

Networks and Conferences

Women on Wall Street™ network and conference, WOWS™ (U.S.): A well-established network, which has organized the annual Women on Wall Street™ conference for female managers in the finance sector for more than ten years now. Numerous training opportunities and events.

Women in European Business®, WEB (Frankfurt, London): A network of women at Deutsche Bank and alumnae who created a forum where female managers can share their experiences and expertise. The networks organize annual women’s conferences in Frankfurt and London, which have become one of the most successful women’s events in Europe with regular attendance of around 1,000 women.

Regional Women’s Networks (Germany): Eight regional networks in Germany that have developed their own activities in order to improve women’s networks and contribute to positive change in corporate culture.

Network for female Managing Directors (Germany): In 2005 a network for female managing directors was launched in order to improve the sharing of experiences and expertise between female senior managers.

Deutsche Bank Women, DBW (London): A network launched in London at the beginning of 2005 in order to promote the professional and personal development for DB women.

Rainbow Group (Germany, UK, U.S.): The Rainbow Groups are networks focused on gay, lesbian, bisexual, and transgender employees’ professional and personal development. The first Rainbow Group was founded in 2000.

Deutsche Bank’s Diversified Network, DBDN (U.S.): DBDN is a network for young professionals from under-represented ethnic groups. It was launched in 2002 for employees in New York, and aims to provide essential tools that foster professional and personal development.

Multicultural Partnership (U.S., UK): Launched in 2003 in New York and early 2005 in London, these networks are an active voice of Deutsche Bank’s minority officers with a focus on the sharing of experiences and the professional and personal development.

Family Network (UK): Founded in 2005, the Family Network aims to provide working families, caregivers and parents-to-be with solutions to help balance home and work and to provide a platform to raise awareness of the needs of working parents across the Bank.

Roundtable for Working Parents (Germany): In 2005 a round table was founded that offers a discussion forum for working families, caregivers, and parents-to-be, and helps them to find solutions to balancing home and work.

Mentoring and Internship Programs

Cross-Company mentoring for women (Germany): The cross-company mentoring program for high-potential women is characterized by the fact that the mentee and the mentor come from different companies. In addition to personal development, the focus here is on the cross-company exchange and the networking between all participants.

Cross-divisional mentoring for women (Germany): The cross-divisional mentoring program is designed to promote high-performing women across the divisions. Up to 60 mentees and mentors participate each year and work together as “cross-divisional” tandems.

Next Steps Mentoring (UK): Deutsche Bank employees are matched with ethnic minority undergraduates from selected British universities and help them with their first steps in the business world.

Deutsche Bank “I Have a Dream” (Germany, UK, U.S., Poland): A successful global internship program established five years ago that targets students who might not otherwise be interested in a finance career due to their backgrounds.

Sponsors for Educational Opportunity, SEO (UK, U.S.): This charitable organization supports high-caliber students and under-graduates of ethnic minority at the beginning of their professional lives. Participants can do internships with the partner companies.

Internship program for students: Coordinated from the head office in Frankfurt, internships are offered to undergraduate students enrolled in German universities at over 20 Deutsche Bank branches worldwide.

Awards and Sponsorships

Working Mother Award 2005 (U.S.): Deutsche Bank was named one of the 100 Best Companies for Working Mothers in the annual survey by “Working Mother” magazine for the fourth consecutive year.

SIA Diversity Leadership Award for Sustained Leadership 2005: Deutsche Bank received the 2005 Securities Industry Association’s Diversity Leadership Award for “Sustained Leadership” for its Women on Wall Street™ conference and related women’s initiatives.

Courageous Corporate Champion Award 2005 (U.S.): In 2005, Deutsche Bank was named the Courageous Corporate Champion by the New York City Gay and Lesbian Anti-Violence Project (AVP). The Rainbow Group employee network members have long played key parts in AVP’s programs including participating in major fundraising events.

Fortune Magazine Top 50 Employers for Women 2005 (U.S.): In 2005, Deutsche Bank was named a Top 50 Employer of Women by Fortune Magazine in a survey targeting the most influential corporations in the US today.

Total E-Quality Award 2005 (Germany): Deutsche Bank received the “Total E-Quality” award for the third time in a row for its diversity initiatives and family-friendly work environment.

Global Diversity: For Deutsche Bank, diversity management means promoting and supporting diversity within the Bank. The Diversity team backs initiatives that help to achieve this goal.

37

“Success Factor Family 2005” Award (Germany): As a member of the Business Forum for Women, Deutsche Bank won the “Success Factor Family 2005” Award sponsored by the Federal Ministry for Family Affairs, Senior Citizens, Women, and Youth.

Opportunity Now (UK): In 2005 Deutsche Bank received a Gold Standard for “exceptional work in the field of gender equality” in the annual Opportunity Now benchmarking exercise by Opportunity Now.

Stonewall Corporate Equality Index (UK): The Stonewall Equality Index, which was first released in 2005, ranks employers on key indicators which range from equal policies and benefit provision through to diverse recruitment. Deutsche Bank ranked 66th in the top 100 employers in the UK.

2005 “Lauf für mehr Zeit” AIDS Walk Frankfurt (Germany): The Deutsche Bank team took part in the race and raised donations for the outpatient AIDS assistance of the city of Frankfurt. Participation was organized by the Rainbow Group Germany, which also represented Deutsche Bank with a corporate booth.

2005 AIDS Walk New York, AWNY (U.S.): The Deutsche Bank team, organized by the Rainbow Group Americas employee network, raised more than USD 81,000 for AIDS Walk NY and ranked among the top ten fund-raising teams. The Deutsche Bank team also achieved Gold Team status for the third year in a row.

Human Rights Campaign – 2005 Corporate Equality Index: In 2005, Deutsche Bank received a perfect score rating of 100 on the Human Rights Campaign’s 2005 Corporate Equality Index (CEI), which rates major corporations on their records toward lesbian, gay, bisexual, and transgender employees, consumers, and investors. 2005 was the third consecutive year that Deutsche Bank achieved a 100% score.

Policies and Regulations

To ensure the highest level of integrity and consistency in all our actions, Deutsche Bank has installed a variety of global policies that encourage employees to collaborate with respect and fairness toward each other, for example the “Code of Conduct” at the global level or the company agreements “Fairness at Work” and “Job and Family” in Germany.

Back-up childcare and emergency care (Germany, UK, U.S.): Employees in the U.S., UK, and Germany can rely upon temporary back-up emergency care for children. In Germany our employees can use the childcare arrangement services of “pme Familienservice” for free. Company kindergartens are available in Frankfurt and Eschborn. Kindergarten places are also offered in Leipzig.

All-Faith Room (UK, U.S.): Worship and meditation rooms for employees of all religious beliefs are available in the U.S. and UK.

Commitment to the Physically and Mentally Challenged in Cooperation with:

Interest Group of Representatives (for severely physically challenged persons) of large companies, IBW

Working Group for the Physically Challenged, BAG (Germany): A working group of banks, Sparkassen (savings banks), insurance companies, and municipalities in North Rhine-Westphalia for physically challenged people.

GDW (Association of Sheltered Workshops): Association of sheltered workshops that perform services work suited to physically challenged persons.

Vocational training centers for physically challenged persons (Germany): Internships and partnerships within the scope of the “db-Mosaic for Employment.”

“Dialogue in the Dark”: An integration project for blind or visually challenged people in Frankfurt.

Sheltered workshops for physically challenged persons – “Initiative Contribute – Help – Gain”: Group-wide publication of the range of services offered by sheltered workshops and the process of order placement by Deutsche Bank.

Diversity Benchmarking Memberships/Participation in Research

Global Diversity Network: A benchmarking network of several global corporations which are leading in the area of Diversity and Inclusion. The network is coordinated by a consultancy firm in London.

Catalyst (U.S.): Catalyst is a leading research organization focused on the advancement of women in business. Deutsche Bank participates in the Catalyst study of women in the financial services industry.

EU Compendium “Good Practice at the Workplace”: Deutsche Bank was selected among 500 applicants across Europe for its good implementation of diversity principles.

Securities Industry Association Diversity Survey, SIA (U.S.): As a member of SIA, Deutsche Bank participates in the bi-annual Diversity Survey.

EU Project “active@work”: Deutsche Bank participates actively in the project active@work on age diversity, which is supported by the EU Commission.

Race for Opportunity (UK): Race for Opportunity is an organization which focuses on global equal opportunities initiatives for members of ethnic minorities.

Opportunity Now (UK): Opportunity Now is an organization which focuses on gender equality and diversity in the workplace.

Staff

“In my vision of a better world, cities such as Mumbai, Nairobi, and Lima would be as well developed as Frankfurt, Tokyo, and New York. We have the very real possibility of making abject poverty history if we work collaboratively.”

Asad Mahmood

Society

Microfinance Consortium Asad Mahmood, General Manager of the Deutsche Bank Microfinance Funds, is optimistic about the future of humanity. “Only two hundred years ago, even in Europe, very few people were well off. Today, India, Brazil, and China possess a middle class whose consumer needs have created whole new markets total-ing trillion of dollars.” Asad Mahmood uses his financial and social investment know-how to combat poverty. Pioneering collaborative finance structures can in future help to finance large-scale social projects in developing countries.

The Global Commercial Microfinance Con-sortium (the “Consortium”) is a USD 75 mil-lion fund that serves as a platform to com-bine high-risk catalytic development agency resources with the scale and execution efficiency of the private sector. Deutsche Bank created the Consortium in recognition of the pivotal roles that the private sector can play in the development arena in part-nership with development agencies. Gary Hattem, Managing Director of the Commu-nity Development Finance Group, noted that, “The crux of the project is to create a meaningfully scaled investment vehicle for investors with both profit and social motives to realize the core objective of poverty reduction through a business approach.”

When asked what is so special about the Consortium, the New-York-based banker answers with the single word: “Partnership.” The Consortium includes diverse and differ-

ently motivated investors: including three leading development agencies (from the United States, France, and the United Kingdom) and 14 institu-tional investors (including Merrill Lynch, State Street Bank, Hewlett Pack-ard, AXA, Munich Re, and Standard Life). They all profit from the Consor-tium in different ways, although all of the participants enjoy one particular benefit equally: “Development has a great influence on the economic, political, and social stability of the world,” according to Asad Mahmood, General Manager of the Deutsche Bank Microfinance Funds.

Microfinance has proven to be a highly effective tool in combating pov-erty. Providing access to capital for micro-entrepreneurs can lift entire families out of poverty, break cycles of dependency, and transform local communities. People in developing countries often require credit as low as USD 50 in order to become economically active and break out of the vicious circle of poverty. Microfinance users include small farmers, fisher-men, street vendors, tradespeople, and service providers such as drivers, cobblers, recyclers, etc. In a relatively short period of 25 years, microfi-nance has mushroomed as an industry and several hundred million peo-ple around the world have been given an opportunity to start a new life with microfinance.

Deutsche Bank’s involvement with microfinance started in 1997 with the Deutsche Bank Microcredit Development Fund (“DBMDF”). The fund’s goal is to establish relationships between microfinance institutions and local banks, creating indigenously based financial systems that serve the

Innovation with LeverageNew USD 75 million fund to combat poverty

The Consortium provided a credit to “ACODEP” in Nicaragua, which in turn granted Maria A. Juarro a credit of USD 295 to enlarge her plantation

Cándida R. M. Gutiérrez obtained her first microcredit 12 years ago to establish a food stand

40

Svetlana Fedotov (Moldova) could go into business with her own tailor’s shop

poor. The DBMDF has relationships with 40 microfinance institutions in 24 countries around the world. The Bank’s activities in this field underline our commitment to the UN’s Global Compact (see p. 49). The Consortium was able to build upon the success of the DBMDF. The Consortium’s cap-italization is USD 75 million, with USD 15 million in equity and USD 60 mil-lion in five-year debt. USAID provided a USD 15 million debt guarantee, which, with the equity, provides debt holders with a 40 percent first loss cushion. Nevertheless, investors have a significant amount of their capi-tal at risk and are thus forced to understand the fundamentals of investing in microfinance. Investors receive a market-based return on their invest-ment. The Consortium is a true partnership of equals, going beyond mon-etary investment by commingling the know-how of its investors and their relationships to further microfinance as an emerging new asset class with a good risk-return profile. The spirit of partnership is enhanced by giving even debt holders a voice in the governance of the Consortium as voting board members. Deutsche Bank served as lead arranger and manager of the deal. “Investors value the kind of investment banking expertise that has been brought to the fund by Deutsche Bank as the manager of the Consortium,” observes Hanns Michael Hölz, Global Head of Sustainable Development at Deutsche Bank.

The Consortium’s collaborative model of bringing differ-ently motivated monies under a single umbrella to cre-ate synergies which cannot be achieved by acting sep-arately is replicable in most areas of development where there is a stream of income that can be financed. The idea of monetizing future flows of revenue and provid-ing capital at scale can be applied to healthcare, educa-tion, affordable housing, alternative energy delivery, and also to providing financial services to the poor. Deutsche Bank is increasingly convinced of the role it can play in financial intermediations of social capital, and is there-fore actively examining ways to use these principles: for example, the creation of the “Eye Fund” in partner-ship with the International Association for the Preven-tion of Blindness and Ashoka to finance eye hospitals in the developing world.

Microfinance Consortium: Groundbreaking USD 75 million fund that provides capital to micro-

finance institutions around the world. Private and institutional investors apply their business

know-how, capital, and development initiatives to create market-based solutions to combat pov-

erty. Deutsche Bank functioned as lead arranger and managed the sale of the fund ■ Deutsche

Bank Microcredit Development Fund: Since 1997, the fund has provided credits of over USD

4 million to 40 MFIs in 24 countries, by means of which a total volume of nearly USD 55 million

has been distributed in the form of microcredits ■ Information: www.community.db.com;

www.unglobalcompact.org; www.undp.org

Josef Ackermann, Seth Waugh, CEO Deutsche Bank Americas, and Bill Clinton at the launch of the Consortium

Agence Française de Développement,

AXA Group, Calvert Social Investment

Foundation, CNP Assurances, Deutsche

Bank, Geisse Foundation, General Board

of Pension and Health Benefits of the

United Methodist Church, Gray Ghost

Fund, HP, Kaminer Foundation, Left Hand

Foundation, Merrill Lynch, MMA, Munich

Re, Rauenhorst Foundation, Standard

Life, State Street Corporation, Store-

brand, The Church Pension Fund, The

Co-operative Bank plc, UK Department

for International Development, US Agen-

cy for International Development, David

Fitzherbert, Elizabeth and Steve Funk,

Deepak Kamra, and Janet A. McKinley

The Consortium is comprised of:

Society 41

Further Topics

Operational environmental pro-tection: Historically, operational environmental protection and ac-tivities to support small and me-dium-sized companies have been at the roots of our Sustainabil-ity Management System. Today, sustainability at Deutsche Bank is not limited to operational environ-mental protection. Nevertheless, it is very important for our cred-ibility as a sustainability-oriented company that we ensure the re-sponsible use of resources within the Bank itself before we call upon suppliers, customers, or business partners to follow our example.

Energy consumption: There are both ecological and economic ar-guments for a drastic reduction in energy consumption. In order to increase the energy efficiency of our facilities, we rely on advance-ments in technology. All Deutsche Bank partners for technical facility management have signed agree-ments in which they promise to identify and implement potential energy-saving measures. Since en-ergy consumption is always influ-enced by employees’ behavior at the workplace, Deutsche Bank, the Deutsche Energie-Agentur (dena; German Energy Agency), and the Energieagentur NRW launched the campaign “Energy fit” in Germany

in 2005. Furthermore, DB Bauspar participated in the EU initiative “Energy Trophy,” which helped to reduce our affiliate’s energy consumption by seven percent. Between 2001 and 2005, Deutsche Bank’s total energy consumption in Germany was reduced by 10.3 percent. CO2 emissions stemming from energy generation fell by 13.1

percent thanks to the decline in energy consumption. As of Janu-ary 2006, 20 percent of Deutsche Bank’s total electricity consump-tion in Germany comes from re-generative energy sources.

Water consumption: As in the case of energy consumption, im-provements in building technology, an obligation on facility managers to identify and implement potential improvements, and regular staff training will help to reduce water consumption. Deutsche Bank’s to-tal water consumption fell by 19 percent over the past five years.

Waste management: As a gen-eral principle, Deutsche Bank aims to avoid waste whenever possi-ble. Certain waste is recycled, and the rest is disposed of in an or-derly way by certified waste dis-posal companies. Between 2001 and 2005, the volume of residual waste was reduced by 46.9 per-cent. In 2005, 62.4 percent of the waste generated last year was re-cycled.

The “Energy fit” campaign on efficient energy consumption

CO2 from energy generation1 per employee (in tons) Total consumption (in t tons)*

1 Figures for Deutsche Bank AG and DB PBC AG; compared to preceding years, figures refer to full-time equivalents2Change in conversion factor against last year’s report

5

4

3

2

1

6.6262

5.575

66.030

7

160

155

150

145

140

170

175 6.9162

*

02 03 04 0501

4.239

25

20

15

10

5

02 03 04

Water consumption per employee (in m3)1 Total consumption (in t meter3)*

05

28.8228.81

01

19.89

3029.70800

700

600

500

400

300

*

250

200

150

100

50

02 03 04

Residual waste per employee (in kg)1 Total residual waste (in t tons)*

05

243.162

281.492

263.37

01

300320.36

*

12

10

8

6

4

2

42

241.86

28.77

Paper: One out of five felled trees worldwide is used for paper pro-duction, with much of the neces-sary pulp coming from countries outside Europe. It is in all of our best interests to significantly re-duce paper consumption. Between 2001 and 2005, paper consump-tion at Deutsche Bank declined by 9.2 percent. As the production of recycled paper does not require fresh pulp, consumes less energy and water, and generates fewer emissions, the Bank aims to in-crease the proportion of recycled paper we use. Over the past five years, the proportion of recycled paper used for photocopies was increased by 27.2 percent. More-over, as of September 2005, only paper certified by the Forest Stew-ardship Council (FSC) is used for Deutsche Bank printers, photo-copiers, and fax machines. The FSC certificate guarantees that the wood for the paper was grown in forests which are managed sus-tainably and in line with social and environmental criteria.

Hazardous substances: While a bank uses relatively few hazardous substances compared to other in-dustries, it is nevertheless a priority for us to use them as sparingly as possible and handle them respon-sibly. We have drafted a specific policy that provides detailed reg-ulations on the use and substitu-tion of hazardous substances, pro-tective and preventive measures, and proper storage and disposal. This policy also applies to the use of hazardous substances by any third-party suppliers.

Traveling: While managing an international company such as Deutsche Bank does indeed re-sult in a certain volume of travel-ing, we strive to keep travel-related greenhouse emissions as low as possible. All employees are obliged to communicate via conference calls or video conferences whenev-er possible. In order to reduce the number of short flights, all employ-ees who regularly travel in Germany receive a BahnCard (train card) for this purpose. Since August 2005, all BahnCards bought by the Bank are “Umwelt-BahnCards.” Under this program one percent of gross sales generated with the BahnCard is donated to the nature protec-tion association, Naturschutzbund Deutschland (NABU). Overall, our cooperation partner for business travel provided 1,484 BahnCards last year. Deutsche Bank has “job ticket” agreements at a number of locations, which encourages em-ployees to use public transporta-tion. The average petrol consump-tion of company cars was reduced considerably, by 14.9 percent, over

the past five years as employees have to pay for part of their car’s fuel consumption. Under the new business fleet regulations, which went into effect on January 1, 2006, the share of the cost which is to be borne by the employee depends to an even higher degree on the fuel consumption of the vehicle. More-over, a soot particle filter is manda-tory for diesel cars. Overall, busi-ness travel was reduced by 20.9 percent between 2001 and 2005.

Integrating philanthropic as-pects into environmental pro-tection: Acting sustainably covers not only ecological and economic, but also social aspects. In Germany, Deutsche Bank has outsourced the disposal of confidential documen-tation, data carriers, and electronic waste to the Genossenschaft der Werkstätten für Behinderte (GDW), a sheltered workshop organization. This step ensures that the waste is disposed of properly and makes an active contribution to the inte-gration of physically and mentally challenged people. Moreover, fair trade coffee was introduced in sev-

8.5

8

7.5

7

6.5

02 03 04

Fuel consumption (company cars)3 liters per 100 km

05

7.467.45

8.30

01

8.77

9

7.76

3Figures for Germany

Society 43

In 2005, Deutsche Bank placed orders worth about EUR 3.7 million with GDW

eral of our cafeterias last year. Fair trade offers better trading condi-tions and helps to ensure social rights for disadvantaged produc-ers, particularly in the southern hemisphere. It thus makes an ac-tive contribution to sustainable de-velopment. The range of fair trade products offered at the Bank is to be successively increased. Environmental data: Deutsche Bank has a comprehensive envi-ronmental data system. It moni-tors the monthly consumption data of the 33 largest locations in Ger-many. This regular procedure helps to easily identify blips, potential dis-ruptions in operational procedures, and potential improvements. The New York branch was included in this system in 2004, and the Lon-don branch, DWS, and DB Bauspar were integrated in 2005. Our sys-tem for data generation and con-solidation was certified by Gerling Risiko Consulting, also in 2005. The figures given in this year’s re-port (see p. 45) were examined by Gerling as well. Deutsche Bank’s target values (see p. 103) refer to the consumption of resources per employee. Due to the restructur-

ing efforts, however, the number of Deutsche Bank’s employees has declined more rapidly than the of-fice space. Since not all vacant of-fice space could be disposed of immediately, the consumption of energy and water per employee has increased over the last few years. In absolute terms, however, consumption was reduced.

Sustainability in corporate pur-chasing: In the spirit of sustainabil-ity, a company should work with suppliers to ensure certain stan-dards are upheld. For Deutsche Bank, sustainability includes mak-ing sure that ecological, social, and ethical issues are respected along the supply chain. Since the inception of the Sustainability Management System at Deutsche Bank, the corporate purchasing and sustainability management departments have been working closely to establish targets and subsequent measures to do just this. Deutsche Bank has a global corporate purchasing system so that numerous products can be procured worldwide and purchas-ing volumes can be bundled. In addition to an electronic purchas-ing system, an internal e-sourcing platform is used for tenders or auctions. Before any purchase is finally carried out, the corporate purchasing department and the department wishing to place an order jointly analyze the depart-ment’s needs, determine whether the purchase is absolutely neces-sary, and set the product criteria in line with the strategic sourcing procedure defined by the Bank. Depending on the product, the Sus-tainability team may define new

criteria at this stage of the proce-dure. For example, the regulations for purchasing flooring are differ-ent from those for buying serv-ers or office materials. As a result, several criteria catalogues (for ex-ample for EDP products, servers, office furniture, or floorings) have been created, which require sup-pliers to give detailed information on ecological and social aspects. Decisions for or against a suppli-er are based not only on technical and economic aspects, but also on the answers given in this ques-tionnaire. While cost effectiveness is a priority for Deutsche Bank, the sustainability criteria set for the product must be fulfilled. The global policies on sustainability are used to collect and evaluate comprehensive information on the use of hazardous substances, on waste disposal, and on the prefer-ence for environmentally friendly products and suppliers with cer-tified environmental management systems. Moreover, all suppliers and third-party vendors must agree

Information campaign on the introduction of fair trade coffee in our cafeterias

44

Germany1

New York, 60 Wall StreetLondon

Germany1

New York, 60 Wall StreetLondon

Germany1

New York, 60 Wall StreetLondon

Germany1

New York, 60 Wall StreetLondon

Germany1

New York, 60 Wall StreetLondon

Germany1

New York, 60 Wall StreetLondon

Germany1

New York, 60 Wall StreetLondon

Germany1

New York, 60 Wall StreetLondon

Germany1

New York, 60 Wall StreetLondon

GermanyBy plane< 500 km> 500 kmBy trainBy rental carUSABy plane< 5 hours> 5 hoursBy trainGreat BritainBy plane< 5 hours> 5 hours

GermanyUSAGreat Britain

GermanyPhotocopy paperof which recycled paperPrinted documentsNew York, 60 Wall StreetLondonPhotocopy paperPrinted documents

2004

23,9155,912

n/a

1,185,052151,007

n/a

858,9193

205,897n/a

775,7983

75,7593

n/a

165,3914

97,1745

n/a

688,9193

198,864n/a

6,7326243

n/a

12,2888993

n/a

126n/an/a

95.9072.2914.4657.8318.714.90n/an/an/an/an/an/an/an/an/a

11,293n/an/a

5,4012,082

1083,319

n/an/an/an/a

2003

24,906n/an/a

1,439,000n/an/a

785,8633

n/an/a

591,4993

n/an/a

150,1944

n/an/a

739,6833

n/an/a

7,9797

n/an/a

n/an/an/a

n/an/an/a

87.0862.99

n/an/a

16.827.27n/an/an/an/an/an/an/an/an/a

10,0098

n/an/a

5,3141,942

1353,372

n/an/an/an/a

2002

27,767n/an/a

1,477,171n/an/a

830,6743

n/an/a

669,7183

n/an/a

154,8044

n/an/a

798,9643

n/an/a

7,3137

n/an/a

n/an/an/a

n/an/an/a

104.1872.64

n/an/a

23.238.31n/an/an/an/an/an/an/an/an/a

11,7138

n/an/a

5,8602,123

1363,737

n/an/an/an/a

2001

41,191n/an/a

1,526,206n/an/a

914,4593

n/an/a

678,4813

n/an/a

174,6244

n/an/a

819,4903

n/an/a

9,9627

n/an/a

n/an/an/a

n/an/an/a

129.5086.40

n/an/a

34.708.40n/an/an/an/an/an/an/an/an/a

14,0148

n/an/a

5,9362,191

993,745

n/an/an/an/a

20052

23,033 (23,852) 4,2777,111

1,125,699 (1,155,685)151,012108,728

787,740 (806,326)210,642365,103

641,365 (654,451)87,894

170,193

152,612 (156,022)108,931

57,738

663,925 (667,275)6

250,24894,000

5,601 (6,657)43922

9,492 (9,813)1,373

658

129 (131)n/a

1

102.44 76.3616.0960.2621.364.72

226.66226.04

77.94148.10

0.62159.89159.89102.3057.59

11,97626,18519,224

5,393 (5,443)1,821 (1,871)

603,559

n/a984444540

1 Germany: figures for Deutsche Bank AG and Deutsche Bank Private and Business Clients AG2 Figures in parentheses for Deutsche Bank AG, Deutsche Bank Private and Business Clients AG, DWS, and DB Bauspar 3 Values recalculated4 Change in conversion rate for CO2 emissions from electricity and recalculated values 5 Change in conversion rate for CO2 emissions 6 Not including DWS7 Change in density8 No change in impact due to long or short distance flights

Comparison of environmental data 2001–2005: Germany, New York, and London

Number of staff (full-time)

Office space (m2)

Power consumption (gigajoule)

Heating energyconsumption(gigajoule)

CO2 emissions from power production (tons)

Water consumption (m3)

Residual waste(tons)

Recycled waste (tons)

Hazardous waste (tons)

Traveling Deutsche Bank Group(million km)

CO2 emissions from business trips (tons)

Paperconsumption(tons)

Society 45

to our sustainability clause. Cor-porate purchasing has defined sustainability issues in its “Glob-al Outsourcing Policy” (released in 2005) and its “Global Sourcing Policy” (reviewed in 2005). For ex-ample, the “Vendor Code of Con-duct” requires suppliers to:

■ use natural resources respon- sibly and reduce negative effects on the environment as far as possible;■ create a healthy and safe work environment;■ comply with wage agreements;■ refrain from using forced or child labor.

Moreover, the updated Global Sourcing Policy includes detailed rules on the prevention of nepotism and corruption. A standard system for evaluating all suppliers is be-ing planned. Concrete examples of the successful integration of corporate purchasing into the Sustainability Management Sys-tem in 2005 are: 20 percent of the power consumed in Germany now comes from renewable sources; the “Umwelt-BahnCard” was in-

troduced to the benefit of Natur-schutzbund Deutschland (nature protection association in Germany); new product-specific sustainability criteria catalogues were drafted; the proportion of recycled paper we use increased; FSC-certified paper is now procured; and the average fuel consumption of com-pany cars continues to decline.

Deutsche Bank’s contribution to fighting climate change: Combating climate change is one of the greatest challenges of our time. International experts forecast an increase in the global surface temperature and the global sea level, a shift in climatic zones, and a higher number of extreme weather events such as tropical storms, floods, and droughts. Natural di-sasters in particular have not only ecological and social, but also huge economic consequences, which af-fect our customers, suppliers, and other stakeholders. Against this background, it is also in Deutsche Bank’s best interest to contribute to a drastic reduction in green-house gas emissions.

Cooperation between the sustainability and corporate purchasing departments: Hanns Michael Hölz (left) and Rainer Blank

46

1. Avoiding greenhouse gas emissions

■ Increasing energy efficiency by steadily improving Deutsche Bank’s building and equipment technology

■ Reducing energy consumption by changing employee behavior: Energy-saving campaign “Energy fit” in the 20 largest offices in Germany in cooperation with Deutsche Energieagentur (dena; German Energy Agency) and Energieagentur NRW

■ Obligation to use video conferences and conference calls in order to steadily reduce traveling

■ Promotion of public transport by financing job tickets at many Deutsche Bank locations

■ Reduction of the number of short flights by granting BahnCards to employees who travel often on business

■ Reduction in the average fuel consumption of company cars by obliging employees with company cars to pay for part of their fuel consumption

■ Allowing purchase of diesel cars only if they have a soot particle filter

2. Promotion of renewable energies

■ Consumption of power from renewable energy sources: As of January 2006, 20 percent of the electrical power consumed in Germany is generated from renewable energy sources

■ Financing of projects to promote renewable energies (see p. 8 et seq)

3. Raising public awareness of climate change

■ Studies by DB Research on the issues of renewable energies, emissions trading, and energy policy (see p. 50)

■ Active participation in the “Arbeitsgruppe Emissionshandel zur Bekämpfung des Treibhauseffektes” (AGE; working group on emissions trading), an initiative of the Federal Ministry for the Environment, in Forum für Zukunftsenergien (forum for resource-saving energy) and in the bodies of Deutsche Energieagentur (dena; German Energy Agency) (see p. 48)

■ Participation in the Carbon Disclosure Project (an initiative to disclose corporate climate policy strategies in order to have financial analysts take this issue into account in their assessments and evaluations of companies)

4. Neutralizing unavoidable greenhouse gas emissions

■ Participation in the Prototype Carbon Fund (PCF) of the World Bank by contributing USD 5 million in 2000. The fund has a total volume of USD 180 million and supports projects to reduce greenhouse gas emissions in Asia, eastern Europe, Latin America, and Africa

■ Participation in the project “Hessische Klimapartner“ since February 2006, which aims to neutralize greenhouse gas emissions. The principle is that unavoidable greenhouse gas emissions, for example from business traveling or energy consumption in buildings, are offset (“neutralized”) by the implementation of additional climate-protection projects. So far, two Deutsche Bank conferences have been “neutralized.“ All greenhouse gas emissions in connection with the production of this report will be offset by a climate- protection project in India (see p. 106).

Our strategy for combating the greenhouse effect

The anthropogenic greenhouse effect

N2O = nitrous oxide, CH4 = methane, CO2 = carbon dioxide, O3 = ozone

Main causes:

■ Burning of fossil fuels (coal, natural gas, oil)■ Increase in traveling and transport activities worldwide■ Global structural change in the industrial sector■ Structural changes in agriculture and forestry

CO2

O3

FCKW

CO3

N2O

CH4

N2O

CH4

Main effects:

■ Global increase in temperatures■ Melting polar ice caps and glaciers■ Increase in the sea levels

■ Larger arid areas

Society 47

48

Since

1992

2000

2000

2002

1998

2000

2004

2000

1995

1997

2001

2001

2003

2006

Committee

Chair: 2000 –2005; member of the Steering Committee since 1998

Member of the Advisory Council: 2000 –2004

Member of the project group“Sustainability in the FinanceSector” since 2001

Board member since establishment of the initiative

Chair since 2001

Board member since 2003

Permanent member of theenvironment committee

Supervisory board member since establishment of the initiative

Member of the board of trustees since 2001

Active membership

UNEP Finance Initiative

UN Global Compact

World Business Council forSustainable Development

Global Reporting Initiative

Bellagio Forum for Sustainable Development

econsense – Forum Nachhaltige Entwicklung

Verein für Umweltmanagement in Banken, Sparkassen undVersicherungen e. V. (VfU)

Forum für Zukunftsenergien e. V.

Bundesdeutscher Arbeitskreis für umweltbewusstesManagement B.A.U.M.

Deutscher Industrie- undHandelstag/Industrie- undHandelskammern

dena – Deutsche Energie-Agentur

Naturschutzbund Deutschland e. V.

Arbeitsgruppe “Emissions-handel zur Bekämpfung des Treibhauseffektes” (AGE)

Hessische Klima-Partner

Overview

■ Specialized working groups on asset management, climate change, environmental management, and reporting

■ Regional task forces: Americas, Far East, Eastern and Central Europe, Africa

■ Code of conduct for companies concerning human rights, labor, the environment, and the fight against corruption

■ 1,950 participants from 74 countries

■ A group of about 175 international firms committed to sustainable development

■ A multi-stakeholder initiative established in 1997

■ Promotion of reporting the economic, ecologic, and social performance of an organization

■ An association of international organizations, foun- dations, NGOs, media institutions, and companies, established in 1993 and aiming at promoting sustainability-oriented projects

■ Initiative of leading German companies and organizations that pursue a sustainability- oriented corporate strategy

■ Forum in which specialists share opinions and experience in ecologic and sustainability issues

■ Promotion of safe, cost-effective, resource-saving, and environmentally friendly energy supply

■ Environmental initiative by the business sector, in particular small and medium-sized enterprises

■ Presented with the B.A.U.M. environment award in 2003

■ Lobbyists for the German business sector with decision makers in local, state, and federal policy, and in European institutions

■ Promotion of environmentally friendly, renewable energies

■ Important association for the promotion of environmental protection

■ Initiative by the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety to define emissions trading in Germany

■ Development and implementation of climate-neutral products and services

Memberships in organizations that promote sustainability

In addition to these memberships, Deutsche Bank was also involved in over 50 national and international events to explain the concept of sustainability as a business case in both social and political contexts

49

Global Compact – communication on progress

The Global Compact calls on com-panies to recognize, support, and implement—within their spheres of influence—a catalogue of fun-damental values consisting of ten

principles on human rights, work-ing conditions, environmental pro-tection, and the fight against cor-ruption. These ten principles are derived from the central goals of the UN. Deutsche Bank was one of the first companies to sign the Global Compact and is deeply com-

mitted to these principles. Not only have we integrated them in many internal guidelines for our busi-ness divisions and Corporate Cen-ter, but we have also made wide-ranging contributions to spreading the principles of the Global Com-pact in 2005.

Communication on progress in 2005:

■ Active participation in more than ten national and inter-national conferences

■ Release of more than 20 printed publications on the topic of sustainability

■ Regular presentations on sustainability in front of national and international audiences

■ Inclusion of sustainability aspects in customer and supplier contacts

For a detailed list see our website www.sustainability.deutsche-bank.de/en.

Principles Examples of their implementation

Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and p. 44, 46, 48

Principle 2: make sure that they are not complicit in human rights abuses. p. 44, 46, 48

Labor Standards

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; p. 44, 46, 48

Principle 4: the elimination of all forms of forced and compulsory labor; p. 44, 46, 48

Principle 5: the effective abolition of child labor; and p. 44, 46, 48

Principle 6: the elimination of discrimination in respect of employment and occupation. p. 36, 37

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges; p. 4 -7, 15, 42- 49, 103

Principle 8: undertake initiatives to promote greater environmental responsibility; and p. 4 -7, 15, 42- 49, 103

Principle 9: encourage the development and diffusion of environmentally friendly technologies. p. 8 -11, 47

Anti-Corruption

Principle 10: Businesses should work against all forms of corruption, including extortion and bribery. p. 16 -17, 46, 50

Implementation of the ten UN Global Compact principles*

*Further information: www.unglobalcompact.org

Society 49

Political dialogue

The financial markets and financial services play a central role in the economy. Their efficiency—and, in turn, the prosperity they help to generate for society as a whole—depends to a large extent on the legal and regulatory framework in place. In this context and as a ma-jor global player, Deutsche Bank engages in political dialogue, and is active in the enhancement of le-gal foundations and in the improve-ment of regulatory frameworks. The Bank promotes an exchange of ideas at all levels of the politi-cal decision-making process and supports national, European, and international initiatives that aim to improve the conditions for the capital markets. We strive to keep in contact with all participants in the legislative process. Moreover, we back the work of expert com-mittees in professional associa-tions, legislative institutions, and of regulators by providing expertise and human resources. The Bank focuses its political efforts in Ber-

lin, Brussels, London, and Wash-ington, D.C. The main aims are to strengthen Germany as a financial capital, to foster the integration of the European financial markets, and to strengthen transatlantic eco- nomic ties.

Deutsche Bank’s representative office to the EU in Brussels: A large part of national legislation is derived from EU legislation, which is adopted in Brussels. That is why Deutsche Bank established a rep-resentative office to the EU in this city more than 15 years ago. This office serves to maintain the con-tact between the Bank and the EU institutions. The EU Commission, the European Parliament, and the governments of the member states are in dialogue with various indus-try representatives. For example, Deutsche Bank can contribute its market expertise to legal proce-dures that will affect the banking sector. The exchange of informa-tion is usually in the form of con-sultations by the EU institutions, in which numerous representatives

of the financial services sector and other areas (such as consumer as-sociations) participate. Our repre-sentative office to the EU monitors current and planned legislation and other political initiatives of the EU institutions, informs the Bank’s departments about relevant devel-opments, and provides input to the EU institutions. Following the preparations for the introduction of the euro, the focus has been on accompanying the numerous measures of the Financial Services Action Plan of the EU Commission during the past few years, which will be continued in the framework of the “White Paper Financial Ser-vices Policy 2005 – 2010.”

Deutsche Bank Research

Deutsche Bank Research, Deutsche Bank’s think tank, regularly pub-lishes studies on current sustain-ability issues. Its network helps to underline the importance of sus-tainability and to maintain and im-prove contacts with organizations working in this area. One goal is to

50

The Deutsche Bank Research team

raise political and economic deci-sion makers’ awareness of sustain-ability issues. Deutsche Bank Re-search considers ecological, eco- nomic, and social aspects of sus-tainability in its studies. Green-house gas emissions trading, the outlook for renewable energies, and the ecological problems stem-ming from China’s rapid growth are only a few of the issues on the agenda. Other topics are the effects of the demographic devel-opment on old-age provision, or the importance of education for a country’s wealth. Deutsche Bank Research combines a descriptive with a normative approach. The department’s studies and public presentations can be viewed on the Internet—free of charge. For more information please visit www.dbresearch.de

Business Continuity Management

Deutsche Bank has made a prior-ity of building strong relationships with auditors, regulators, and gov- ernment bodies around the globe

to help drive its Business Conti-nuity Management activities and maintain open and timely commu-nications in crisis events. Deutsche Bank has utilized its partnerships with the UK’s Financial Services Authority, the Bank of England, and the HM Treasury to develop its crisis exercises, whilst provid-ing them with insight into the fi-nancial industry’s continuity man-agement through participation in working groups and conferences. Deutsche Bank has also collabo-rated with the Metropolitan Police Special Branch on its simulations to the extent that they used our London crisis simulation script for their own annual exercise in July.

Deutsche Bank is represented in key industry groups such as the US’s Securities Industry Association, the UK’s Securities Industry Business Continuity Management Group, and the Association of Banks in Singapore, which help promote knowledge sharing and best prac-tice across the financial industry.

Deutsche Bank has helped raise awareness of potential threats, such as avian influenza or cyber terrorism, through a variety of events. The Bank, along with the Center for Biosecurity, a Baltimore- based crisis think tank, and the US’s Contingency Planning Ex-change, organized a pandemic conference in New York in Sep-tember 2005. The event gave over 200 people from across the fi-nancial industry the opportunity to hear from world-renowned ex-perts and policy makers from the White House, the World Health Organization, the US Department of Treasury, and the New York City Health Department. The Bank has also presented at industry confer-ences in Barcelona, Frankfurt, and Tokyo.

Sharing and promoting tax know-how

Our Group Tax staff contributed to the public debate on tax policy again in 2005. For example, they helped to further develop the con-cepts of a modernized company tax law under the patronage of the German Stiftung Marktwirtschaft und Politik. Deutsche Bank Group Tax has also had a say in the tax policy proposals of the “Initiative Finanzplatz Deutschland” (IFD). Moreover, Deutsche Bank staff in the United Kingdom, the United States, Hong Kong, Japan, and Aus- tralia contribute to debates about tax issues by formulating the van-tage point and the interests of foreign banks doing business in those countries. They support the Organization for Economic Coop-eration and Development (OECD) in the field of business entity taxa-tion and work with the Centre for European Policies Studies on behalf of the European Commis-sion to harmonize taxation rules within the EU. Moreover, our staff participate in the International Fis-cal Association (IFA), in which all important fiscal administrations of the industrialized countries discuss and later publish key taxation is-sues annually.For detailed information concern-ing the provision for income taxes and tax yield, please see the Finan-cial Report 2005, p. 5, 11, 132 et seq.

Society 51

Brochure can be downloaded at www.dbresearch.de

Education

Commitment to Society

Community Development Music Art

Our Principles and Areas of Activity

On the preceding pages we have detailed how Deutsche Bank actively puts corporate responsibility into practice for its shareholders and customers, its staff members, and society as a whole, through the manner in which we do business. Yet the Bank is also engaged in a multitude of community activities that reach far beyond the world of business—through donations and spon-sorships, through projects initiated by the Bank, and not least through the volunteer work of staff members. Both these spheres of social responsibility are closely connected not only materially but also in spirit. Our commitment as corporate citizens is only the outwardly most visible aspect of our corpo-rate culture, which itself is anchored at all levels within the company in the form of codes of conduct, guidelines, and leadership standards.

With total commitments of nearly EUR 90 million, the Bank’s foundations and non-profit institutions once again made it one of the world’s leading corporations in this field in 2005. Our social commitment focuses on the four areas of education, community development, music, and art, whereby all of our projects and sponsorships adhere to the four principles of sustainabil-ity, diversity, investing in people, and giving more than money.

Sustainability is a key feature of our support for the arts, which typically focuses on the audiences of tomorrow (see p. 70), and also underlines our commitment to poverty alleviation through microcredits (see p. 38 et seq.). As an international financial services provider with employees from 130 nations, we also know the value of cultural diversity. Preserving this diversity and promoting exchange between cultures based on mutual respect is thus a central concern.

In addition, all of our activities are aimed at enabling people from all walks of life to reach their full potential and achieve their goals. This means, for example, not only supporting the younger generation in the fields of art and music, and not only “helping people to help themselves”: It also in-volves placing education at the center of all our projects and undertakings— highlighting its status as society’s most precious commodity. And especially as a leading financial services provider, we also strive whenever possible to provide “more than money”—to underscore the effectiveness of our finan-cial contributions through personal commitment (see p. 84 et seq.).

Art New Networks Volunteering Corporate History

2,000

1,500

1,000

500

0

Spending on the arts and society worldwide in 2005In EUR per employee by region

1Growth rate is calculated based on total spending for the previous year and assuming a constant number of employees

2,500

Germany UK North and

South America

APAC Europe and

Africa

Total

369(+2%)1

2,413(+1%)1

1,397(+14%)1

1,855(+412%)1

1,148(+17%)1

1,414(+23%)1

Spending on the arts and society worldwide in 2005Total: EUR 89.7 million1—by topic

1Includes sponsorships for the arts and society

Community Development (including disaster relief) 49%

Education and Science 24%

Music 14%

Art 11%

Sustainability Man-agement System 2%

“My dream is to see people from different generations and walks of life working together.”

Toni Kodantke

Education

Youth BankIn early 2005 in Leipzig, Toni Kodantke met the students in the Youth Bank project for the first time. In this initiative, young people help their peers to realize their own project ideas by providing the necessary cash, but more importantly, by providing the nec-essary know-how. The Youth Bankers are supported in their work by mentors from Deutsche Bank. At first, Toni Kodantke, a private client advisor, was skeptical of the idea given the differing backgrounds of the participants. But now he is convinced that the transfer of competence between his banker’s world and the social skills of the young people in the project works. “We are the springboard from which these young people take off,” says the 25-year-old.

Since the autumn of 2005, life in an eastern Berlin suburb has been en-riched by a new publication, “Pet-ze”—in English “squeal”—sponsored by the local Youth Bank. The news-paper keeps young people informed about youth club activities and oth-er events in their part of the city. The seed money of EUR 140 needed to start the newspaper was a good in-vestment: the project now supports itself through local sponsors who ad-vertise in the paper.

“Petze” is one of 105 micro-projects supported by Youth Banks last year. Since mid-2004, the German Chil-dren and Youth Foundation and the Deutsche Bank Foundation have been supporting young people who need money to turn their ideas into real-ity. Each Youth Bank has three to ten young volunteers who help their

peers implement their project ideas. Which projects receive support is decided by the Youth Bankers themselves after careful consideration of the initiators’ plans. If the bankers give the project the OK, the initiators receive between EUR 50 and EUR 400 from the Youth Bank’s funds. If the young entrepreneurs succeed in winning other sponsors for their idea, the sum is increased by matching funds from the Youth Bank; and the money does not have to be paid back. In 2005, the fifteen Youth Banks in Germany between Flensburg and Regensburg gave nearly EUR 46,000 to grassroots projects and in matching funds. In addition, the initiators of the supported projects managed to raise nearly EUR 36,000 from other sources. But money is not everything. Often the main point is to provide contacts and professional support.

According to a 2004 Infratest study for the Federal Ministry of Family Affairs, 35 percent of all 14- to 25-year-olds do voluntary work of some kind. “Youth Banks offer an opportunity to really get something going and provide a boost to extra-curricular education,” says Christian J. Stronk, Chairman of the Deutsche Bank Foundation. “For us, this exchange of ideas with young people is very important. Both sides can learn from each other. We learn to understand better how our society functions, and we discover new ways to fulfill our social mandate as a foundation.” The foundation supports the Youth Banks with an annual grant. In addition, Deutsche Bank staff members volunteer their services as mentors to the young bankers.

Pinstripes OptionalYouth Bank—seed money from a different kind of sower

Deutsche Bank Foundation Education and community development support in 2005 Total: EUR 3.5 million

*Principally for support projects for young people

Youth Bank10%

Other4%

Alfred HerrhausenFund*14%

Disaster Relief(Tsunami)

58%

Youth- School- Industry14%

56

Since the beginning of 2005, private client advisor Toni Kodantke and his colleague Andreas Kirchberger have been mentoring the Youth Bank in Leipzig. “After we had overcome our initial inhibitions and both sides recognized that they had something to gain, we quickly became a team,” recalls Kodantke. “Absolutely,” confirms Bianka Pergande, Program Coor-dinator for the German Children and Youth Foundation. “The contacts with Deutsche Bank staff members quickly proved to be a massive advantage,” she says. The Bank is an important partner, opening doors, providing office space, and facilitating contacts with local companies. In addition, accord-ing to Bianka Pergande, the mentors give the Youth Bankers “an enormous sense of self-esteem.” With such support, even the most ambitious projects manage to get off the ground. For instance, the Youth Bank in Leipzig has helped to realize a project in which young people research into their social environment and incorporate their findings into a city-wide analysis of social space. “The goal of the project is to improve the situation of young people in their local city districts,” explains Franziska Riedel, a 21-year-old student. Anybody—individuals, groups, clubs, and schools—may participate. The

results of the project will also be presented in Deutsche Bank’s offices in Leipzig during the course of 2006. For Toni Kodantke, this project has a very special value. “Deutsche Bank’s financial transactions are recorded in its balance sheet—out of sight and out of mind for most people. Through my work with the Youth Bank, I have been able to make the Bank visible to a much wider public.”

Youth Bank: Advised by Bank employees, “Youth Bankers” help their peers to realize their

projects ■ Project Partners: German Children and Youth Foundation, Servicestelle Jugendbe-

teiligung and the Deutsche Bank Foundation ■ Support in 2005: 105 micro-projects with a total

commitment of around EUR 46,000 ■ Participation: 70 young people regularly volunteer their

time for one of the 15 Youth Banks, 24 Deutsche Bank staff members support them as mentors

■ Information: www.youthbank.de; www.dkjs.de; www.servicestelle-jugendbeteiligung.de;

www.deutsche-bank-stiftung.de

Christian J. Stronk (left) at the opening of the Youth Bank initiative

Exchange of ideas between banker—Toni Kodantke (left)—and Youth Bankers

Team discussion at the Youth Bank in Berlin Mahrzahn

Education 57

Deutsche Bank’s commitment to education can be broken down into four main areas of support. This includes on the one hand edu- cation projects that mix learn- ing with economics or with the arts, as well as initiatives that pre-pare young people for entering the working world. On the other hand, the Bank also sponsors out-standing academic achievement in higher education and research. The main goal of the Bank’s com-mitments in these fields is to en-able people to discover their tal-ents and to transform their poten-tial into reality.

Education projects in economics

General Education in Finance:Together with the “Handelsblatt” newspaper, in 2005 the Bank start- ed an initiative to promote finan-cial literacy. The two partners pub- lished free teaching material for eco-

nomics classes in schools, which was requested by some 10,000 teachers in Germany. Forming an umbrella initiative to coordinate this education program, 60 cus-tomer advisors in the Bank’s retail business will take an active part in the project in 2006. In the pilot phase they help teachers prepare lessons on finance, and they also give schoolchildren an insight into the everyday world of finance.

Youth-School-Industry: Since 1998, over 13,000 children from 700 schools have taken part in this eco-nomics competition, supported by 800 of their teachers. To promote dialogue between partner schools in countries such as Germany, Po-land, Hungary, and Slovenia, start-ing in 2005/06 the Deutsche Bank Foundation expanded the project under the title “Y-S-I: Dialogue in Europe” with the goal of encour-aging schoolchildren from differ-ent countries to work together on internationally relevant topics.

Summer Business Camp: In 2000 the Deutsche Bank Americas Foun-dation established a partnership with “Creating an Environment of Success” (CES) to support the or-ganization’s Youth About Business Summer Business Camp program. Using a case study approach, the program exposes students to finan-cial concepts, models, strategies, and terminology. Marketing experts, lawyers, and investment advisors teach the courses, bringing a wealth of practical experience to their classes. Columbia University hosted last year’s New York camp, which

Other Education Projects – A Selection

58

Schoolchildren from Slovenia: First prize for a project on older consumers

Since 1999, one thousand students have been able to learn about business directly from the experts

Besides Enriching Curriculum Learning, the Bank supports cultural education projects such as KINDER ZUM OLYMP! and Zukunft@BPhil (see p. 66 et seq.)

was attended by some 140 stu-dents. In 2006 it is planned to ex-tend the program to Philadelphia and Chicago and to establish the camps on a national level.

Cultural education projects

Enriching Curriculum Learning: One mainstay of this program, through which Deutsche Bank CSR UK promotes partnerships be-tween schools and cultural institu-tions, is “Interact.” This is an initia- tive in which, in partnership with the National Theatre in London, play-wrights are commissioned to write new plays on current issues that are then to be performed in schools. It is estimated that each year more than 60 percent of the schoolchil-dren who see these plays are ex-periencing live theater for the first time. In 2005 alone, approximately 58,000 kids attended the plays.

Getting started in a career

START: START is a scholarship program organized by the Hertie Foundation, the Senate Adminis-tration for Education, Youth, and Sports of the State of Berlin, and the Deutsche Bank Foundation. The goal is to facilitate the transi-tion to higher education for talent-ed and migrant children in need. Since the program was initiat-ed, 33 of the Bank’s staff have counseled scholarship holders, giving them coaching and tips for their professional futures. START, which had 36 scholarship hold-ers in Berlin in 2005, will be ex-tended to North Rhine-Westpha-lia and the Stiftung Handelsbank in Lübeck in 2006.

Young Enterprise London: This non-profit organization offers young people an opportunity to gain ex-perience of the working world.

Over a one-year period, young peo-ple set up companies with the help of mentors, giving them insights into the realities of business. With the support of Deutsche Bank CSR UK, the YEL network aims to reach 50,000 young people annually.

Promoting science

Deutsche Bank Donation Fund in the Donors’ Association for German Science: Through this fund established in 1970, the Bank supports research and teaching in the field of science on both a national and international level, with an emphasis on university-level scholarship in fields relevant to finance. Supported institutions include the European University Viadrina in Frankfurt/Oder and the private Bucerius Law School in

Hamburg. In 2005, the fund pro-vided grants to the extent of EUR 4.9 million (see pp. 83 and 100).

Deutsche Bank Donation Fund Grants awarded on the initiative of Deutsche Bank in 2005 (selection)

Bucerius Law School GmbH, Hamburg: Support for the Institute for Foundation Law and the Law of Non-Profit Organizations

European University Viadrina, Frankfurt/Oder, Chair for General Management Studies: Graduate seminar “Capital Markets and Public Finance in a Larger Europe”

Frankfurt Institute, Foundation for Market Economy and Politics, Berlin: Support for research into economic and organizational policy

Society for Capital Market Research e. V. at the University of Frankfurt am Main: Expansion and conversion into the Centre for Financial Studies

Johann Wolfgang Goethe University, Frankfurt am Main: Deutsche Bank Prize in Financial Economics, executive training program with focus on E-MBA, Frankfurt Institute for Advanced Studies, and other sponsorships (see p. 83)

Ilmenau Technical University, Institute for Media and Communications Technology: Endowed professorship in Multimedia Applications

University of St. Gallen, Switzerland: Expansion of the university campus

Education 59

A taste of theater: 58,000 schoolchildren participated in “Interact” in 2005

On the path to higher education: Cooperation with START since 2004

Deutsche Bank Donation Fund Grants allocated on the initiative of Deutsche Bank in 2005 (by subject area)Total: EUR 4.9 million

Natural Sciences and Medicine

20%

Humanities 9%

Social Sciences 1%

General Sciences 12%

Economics 54%

Law 4%

“In my ideal world, every human being is equally important.”

Alejandro Caballero

Disaster relief When Alejandro Caballero saw the first images of the devastation caused by the tsunami, it was immediately clear to him that he had to do something to help. In June 2005, he left his family and job in Madrid to apply his management skills as Deutsche Bank project leader for recon-struction projects in India, Sri Lanka, Thai-land, and Indonesia. After working in the region for eight months, he is especially impressed by the optimism of the people there: “Everybody, even those who have been hit hardest, face the future with con-fidence. People are working with incred-ible energy to return to a normal life.”

Community Development

Together with its clients and staff, Deutsche Bank has donated a total of EUR 14.5 million to help the Asian tsunami victims. In 2005, the Bank appointed its own project leader for the region in order to ensure that donations are applied appropriately and accountably to sustainable re-lief programs. In the following conversation, Alejandro Caballero goes on to explain how he selects projects and partners for reconstruction work in the region.

Why would a successful management consultant leave his job in Madrid to become project leader at Deutsche Bank in countries devastated by a tsunami?As soon as I saw the first pictures on TV, I realized that this extraordi-nary event demanded an equally extraordinary personal response—from me. Then I read the Bank’s job posting; it corresponded exactly to my no-tions of what needed to be done and to my experience in humanitarian projects.

When you took up your new responsibilities in June 2005, for many peo-ple the catastrophe had lost its urgency. Why was it so important to start work in the region at that point in time? Many of the aid organizations had terminated their work after six months. Other NGOs—some international but for the most part regional and local—took over the task of organizing long-term reconstruction work. It was a good moment to seek out partners who could start up sustainable long-term projects with the money the Bank had collected.

Many organizations would like to receive financial support, and many proj-ects seem sensible at first sight. Yet you have to make a choice. How?We have developed a number of criteria that we apply to all organizations and projects under consideration. The main factors are trustworthiness, organizational transparency, and prospects for a long-term partnership. Projects in which Bank staff members can work as volunteers also stand a good chance of being supported. But what is most important is that the people concerned benefit from the help.

What kinds of projects provide the most sustainable ways of improving people’s situations?In our experience, different needs arise at different times. Beside imme-diate material help, the most urgent initial need was psychological care for traumatized children and adults. As soon as people have regained their emotional equilibrium, projects that help them to make a new start in life—with a new job or even a new business—stand a much better chance of succeeding. We particularly emphasize education and training. This includes pre-school programs, setting up training centers, and run-ning teacher training programs. In the Indonesian province of Aceh, for in-stance, 1,500 teachers were killed by the tsunami, so the demand for new teachers was immense.

Deutsche Bank’s Disaster Relief ProgramAlejandro Caballero on how Deutsche Bank has been helping victims of natural disasters

DB employees to DB Foundation

EUR 1.5 m

Tsunami relief Origin of donationsTotal: EUR 14.5 million

DB clients to DB FoundationEUR 1.7 m

Deutsche Bank GroupEUR 10 m

DB employees“matched giving”

EUR 1.3 m

Alejandro Caballero manages the Bank’s relief efforts, here in Tamil Nadu

62

Amid all this suffering, isn’t there a danger that you will lose sight of in-dividual needs? For me, every individual is important. Take for instance the case of Tissera, a tailor in Sri Lanka. The tsunami destroyed his house and the workshop which he used to share with his brother. Neither of them had the money to build a new one. Tissera left his home town and moved with his family to the capital Colombo. There he got a job as security guard with Deutsche Bank. When my colleagues heard of his fate, they got together to help him. Deutsche Bank in Colombo donated EUR 4,000 to rebuild his house and equip two workshops—one for Tissera and one for his brother. Soon he will once again be able to run his own business in his home town and support his family.

In 2005, there were a number of other major catastrophes, such as Hur-ricane Katrina and the earthquake in Pakistan. How was the Bank able to help out in these cases? One of the Bank’s great strengths is the personal commitment of its staff members. After Hurricane Katrina, colleagues in the USA started a number of fundraising initiatives, collected food for homeless people, and helped to rebuild houses (see p. 89). After the earthquake in Pakistan, Syed-A. Hussaini, a member of the Bank’s staff, organized tents and med-ical supplies and mobilized a team of volunteers. He set out with them for a mountainous region that had not yet been reached by relief workers, and there he set up a medical aid post.

Disaster relief 2005: Deutsche Bank donated EUR 1 million to earthquake victims in Kashmir,

of which EUR 600,000 has already been distributed. Of this, EUR 500,000 was shared equally

between the Maltese Relief Service and St. John Ambulance; EUR 100,000 was shared equally

between the Red Cross and “matched giving” programs in the USA and Great Britain ■ The

Bank’s North American Equity Division donated all commissions earned on September 7,

2005, to the victims of Hurricane Katrina. Together with donations made by individual staff

members, this amounted to USD 1.8 million ■ Information: www.tsunamirelief.db.com

Six nursery schools were built in the Hambanota district (Sri Lanka) and opened in the first half of 2005

DB country head offices to reg. aid organizations EUR 2.7 m

Tsunami relief Appropriation of donated fundsTotal: EUR 14.5 million

DB Foundation to regional projectsEUR 3.2 m

DB directly to international aidorganizationsEUR 4.8 m

DB employees to international aid organizationsEUR 1.3 mDB Microcredit

Dev. Fund to reg. micro-finance inst. (see p. 40)EUR 2.5 m

Community Development 63

Alejandro Caballero consults a microfinance institution

Alfred Herrhausen Fund “Help-ing People to Help Themselves”: Support from the fund enables dis-advantaged or handicapped young people to gain job qualifications and take charge of their own lives. In 2005, for example, the fund sup-ported the “be-wasch” project in Singen, Germany, which involves a commercial laundry service where 18 handicapped young people are employed. Last year the fund pro-vided a total of over EUR 500,000 to support 32 various projects.

One Economy: To help young people get prepared for the job market, the Deutsche Bank Amer-icas Foundation supports One Econ-omy, an organization that enables low-income earners to gain access to new technologies. In 2005, the foundation committed USD 5 mil-lion to help build a housing project with high-speed Internet access.

Deutsche Bank Spotlight Awards: In cooperation with Common Pur-pose, Deutsche Bank CSR UK pre- sents awards to young people who tackle problems in their communi-ties through campaigns they cre-ate themselves. Over 6,500 young people have participated in this scheme to date, and tens of thou-sands more access its case stud-

ies and learning modules on the Internet. In 2005, the program was shortlisted as Business in the Com-munity’s national example of excel-lence for investing in education.

Skills for Work: Together with the Peabody Trust, for the past two years the Bank has been sup-porting the Digivan Links initiative in the London Borough of Tower Hamlets. The Digivan, a mobile computer lab, provides IT training and counseling to the socially dis-advantaged and the long-term un-employed.

Program for New Business Founders: The Deutsche Bank Business Development Loan Fund, totaling GBP 250,000, was set up 18 years ago to provide capital for newly-founded small businesses through the East London Small Business Centre (ELSBC). In addi-tion, the ELSBC administers the

Deutsche Bank Short-term Cloth-ing Loan Fund and also provides business counseling programs.

Initiative Against Homeless-ness: In 2004, Deutsche Bank CSR UK initiated a joint venture with charity organizations to provide support to the homeless, aiming at reintegrating them into the working

community. In 2005 alone, Deut-sche Bank donated in excess of GBP 200,000 for the initiative. In addition, 85 staff members vol-unteer for tasks such as helping homeless people to find work.

SJF Ventures: This venture capi-tal fund finances rapidly growing small companies whose compet-itive advantage lies in their use of innovative sustainability aspects combined with effective manage-ment. As an investor in this fund, Deutsche Bank Americas sup-ports the implementation of envi-ronmentally friendly processes in companies.

A Future for Children!: Deutsche Bank has been in partnership with SOS Children’s Villages since 2003. The original seed capital for this venture of EUR 200,000, which was donated by DB Bauspar AG in the form of a building society contract,

Other Community Development Projects – A Selection

340 young people were nominated for the Spotlight Award in 2005

Bank employees in the Whitechapel Mission kitchen for the homeless

64

Internationaler Dialog 65

grew by the end of 2005 to over EUR 1 million, thanks to contribu-tions by staff members and custom-ers of the Bank. In addition, Bank employees have also been active in initiatives like arranging holiday activities for SOS children.

NOAH—Nurturing Orphans of AIDS for Humanity: Since 2002 the Deutsche Bank Africa Founda-tion (see p. 97) has been support-ing the integration of AIDS orphans into South African society, and edu-cation plays a key role. The children

are looked after by volunteers in small family groups and also re-ceive schooling. Currently 16,127 children are being cared for in 66 communities by the initiative.

Educational Program for AIDS Orphans: The Deutsche Bank Asia Foundation supports educational programs for orphans in Thailand, Vietnam, Cambodia, and India. In cooperation with the Education Development Centre, the programs have to date provided schooling and childcare for 1,480 children. Deutsche Bank also supported AIDS prevention programs for young people in these countries.

Primary School in Pakistan: In cooperation with local charity The Citizens Foundation (TCF), Deut-sche Bank Pakistan is funding the construction of a school in Mirpur Sakro. The building will cater to 180 students and will house an admin-

istration block, classrooms, a li-brary, an art room, toilets, and a play area. Construction began in July 2005. Sourcing of furniture and school supplies is underway, as is the hiring of teachers and other faculty staff. TCF is on track to have the school operational by August 2006.

Institute for Poverty Research: For the next five years, the Deut-sche Bank Asia Foundation will be providing support to the Peking University Institute on Poverty Re-search. The institute’s research fo-cuses on poverty alleviation and the social impact of environment, trade policies, and education ini-tiatives on this issue.

Fundación Deporte y Desafío: The Bank provides support to this Spanish foundation, which orga-nizes sporting events for handi-capped people. For the past three years, for instance, it has been run-ning golf courses for young people, for which Bank employees have been volunteering their services.

National Anti-Doping Agency (NADA): As a founding member of NADA, Deutsche Bank is com-mitted to supporting fair play in athletics. This foundation is an ini-tiative made up of members from the fields of sports, politics, and business that is committed to combating and preventing dop-

ing. In 2005, Hanns Michael Hölz, head of Sport Sponsoring at the Bank, became the first representa-tive from the business world to be elected Chairman of NADA’s Board of Trustees.

On the Path to Olympic Glory: This project supports top-flight athletes working in medium-sized companies in their professional ca-reers by helping the German Sport Aid Foundation to financially com-pensate for the athletes’ absences from work resulting from training and competitions. Thanks to the support of Deutsche Bank, more than 180 companies have partici-pated and some 250 athletes have profited from the scheme since its inception four years ago.

Education 14%

Deutsche Bank Americas Foundation* Support in 2005 by topicTotal: EUR 15.0 million

*For further information, see p. 96

Community Development73%

Art and Music6%

Sustainability, Microcredits,

Other7%

15 Bank employees refurbish the court-yard of a partner school in South Africa

Besides the program for AIDS orphans, the Asia Foundation supports other education projects and coordinates tsunami relief efforts (see p. 97)

Community Development 65

KINDER ZUM OLYMP! At the mere mention of “KINDER ZUM OLYMP!”, Sabine Moch, head of the In-vestment & Finance Center of Deutsche Bank in Bremen, goes into raptures: “The children radiate incredible enthusiasm! And the dedication of their teachers is outstanding!” These things impressed her deeply when she presented the special award of the Deutsche Bank Foundation to Bremen’s Findorff District School in June 2005 for their music project “re-sponse—weather report.” And in future, Sabine Moch wants to help even more children to explore new worlds through music.

Music

“I’d like to see all children be given the opportunity to experience culture first- hand and even create it themselves.”

Sabine Moch

68

What do “Summer Piano,” “Speech Song,” “Helsinki,” “African Rhythm,” and “Little Elevens” have in common? They are all sections of a “musical weather report” that fifth grade students at Findorff District School in Bremen composed in March 2005. To help them with their project, the class had the support of composer Babette Koblenz, violinist Mathias Cordes, and two teachers from their school. The ten- and eleven-year-olds set five self-composed “weather poems” to music. Each poem consists of eleven words—hence “Little Elevens.”

The goal of this particular one-week music workshop was for the children to compose musical scores for their texts with the help of professional musicians, to rehearse the compositions with an orchestra and choir, and to perform the result in front of a public audience. “Only a few of the kids had any experience at all with musical composition, let alone with modern music,” says music teacher Almut Schülke. By interpreting the texts and experimenting with tones, melodies, and rhythms, the students’ untapped creative energy was released.

The project was a great success for all involved. The jury of “KINDER ZUM OLYMP!” thought so, too: it was one of the main winners. With the launch of “KINDER ZUM OLYMP!” in autumn 2004, the Cultural Foundation of the German Länder invited all German schools to develop creative projects with cultural institutions or in-dividual artists and submit them for judging the following summer. “The quantity and quality of the projects submitted have far exceeded our expectations,” says Margarete Schweizer, proj-

Music is everywhere. It only needs to be discovered—as here by the children of the Brandis Grammar School in their project “Music is cancelled,” also one of the top prizewinners in the competition in 2005

The “Class(y)room” of the Montessori School in Hofheim: Dance theatre under the choreographic direction of A. Simon

Wishes Are Born of New ExperiencesKINDER ZUM OLYMP! – A competition to foster cultural education

ect director at the Cultural Foundation of the German Länder. Nearly 800 schools entered the competition, which was supported by the Deutsche Bank Foundation; and 269 projects from the fields of music, art, art history, theater, dance, literature, film, and new media were selected for the finals. In Potsdam in 2005, 32 schools and their project partners were awarded prizes. “response—weather report” from Bremen received a special award from the Deutsche Bank Foundation.

“To secure the place of art and culture in our children’s lives, we have to come up with creative strategies. All too often, children lose interest in such things at an early age—or do not develop any interest at all,” says Margarete Schweizer of the competition. She sees the proposed increase in the number of day schools in Germany as both a challenge and an op-portunity for cultural education, as the traditional afternoon music and art clubs in German schools are having to give way to the all-day curriculum. For their part, the schools are increasingly reliant on outside help. And ac-cording to Margarete Schweizer, “‘KINDER ZUM OLYMP!’ represents an innovative form of cooperation between the worlds of culture and edu-cation.” The support provided by the Deutsche Bank Foundation guaran-tees that this unique competition will continue until at least 2009. Initia-tives such as this one, as well as Zukunft@BPhil (see p. 70) and Enriching Curriculum Learning (see p. 59), which help increase children’s curios-ity to learn and open up new realms of cultural experience for them, are one of the main focuses of Deutsche Bank’s support and that of its foun-dations. For culture is not just an educational side-dish, as proved again and again by current research into education, it is an essential catalyst for developing logical and creative skills.

Sabine Moch, head of Deutsche Bank’s Investment & Finance Center in Bremen, was so profoundly moved by the unique music project “response— weather report” that she resolved to do something herself to foster cul-tural education in Bremen. With financial help from Deutsche Bank, since the beginning of 2006 she has been supporting a new city project in which the Bremen Philharmonic invite school classes to 50 of its rehears-als. After each rehearsal, the schoolchildren are allowed to try out all of the orchestra’s musical instruments under the direction of professional musicians. “Wishes are born of new experiences,” says Sabine Moch in describing what motivated her to initiate this project. “By supporting this project, I would like to inspire children and young people to become inter-ested in music and gain the self-confidence to try new things.”

KINDER ZUM OLYMP! (Children to Olympus!): a competition to foster cultural educa-

tion, in which German schools develop projects with cultural institutions or individual artists

■ Partner organizations: Cultural Foundation of the German Länder and the Deutsche

Bank Foundation ■ Participation in 2004/05: 269 competition entries ■ Information:

www.kinder-zum-olymp.de; www.deutsche-bank-stiftung.de; www.kulturstiftung.de

Competition entries by genre

Art and Art History 73

Cross-genre 71

Music 49

Theater and Dance 40

Film and New Media 22

Literature 14

Total 269

Prizewinners 32

Participation by age group

Classes 5 – 9 (ages 10 –15) 86

Classes 1– 4 (ages 6 – 9) 75

Classes 10 –13 (ages 16 –19) 68

Entries embracing all age groups 55

But first the children had to practice and practice …

Prizewinning weather report: Almut Schülke and her students

… with violinist Mathias Cordes

KINDER ZUM OLYMP! Competition statistics for 2004/05

69Music

70

Other Music Projects – A Selection

Berliner Philharmoniker and Zu-kunft@BPhil: In 2005, Deutsche Bank extended its more than ten-year partnership with the Berliner Philharmoniker for a further five years. The partnership’s educational programs include Zukunft@BPhil, which encourages young people to explore the world of classical music and to discover the creative

potential within themselves. Since 2002, more than 4,000 young peo-ple from 114 Berlin area schools have participated in the program, which to date has realized 31 proj-ects. The Deutsche Bank Founda-tion complements this commit-ment to young musicians through its support of the Berliner Phil-harmoniker Orchestra Academy, in which young musicians are coached for membership in the world’s best orchestras.

London Philharmonic Orches-tra (LPO): Each year the LPO performs six concerts for some 18,000 schoolchildren. Students participate in workshops as well as attend interactive concerts. For many of the students this is their first experience of an orchestra playing live classical music. For the past four years, the Bank has been

supporting this program through the Deutsche Bank Free Tickets scheme. The tickets are distributed to schools across the UK.

Academy Opera Today: For the fifth year running, in the autumn of 2005 a new intake of young direc-tors, producers, conductors, and theater managers was accepted

into this academy founded by Deutsche Bank. The annual cere-mony for new students is arranged entirely by scholarship holders that “graduate” that year. A new feature of the 2005 event was the per-formance of three contemporary operas at the Künstlerhaus Mou-sonturm in Frankfurt. The interdis-ciplinary two-year scholarship pro-gram allows aspiring young leaders in the field of opera to exchange ideas on the future of this art form, as well as to develop projects and visit performances together (see p. 99).

The Mix: Deutsche Bank and the Lyric Hammersmith Theatre in Lon- don started “theMix” in 2005, a pro- gram that teaches young theater groups key entrepreneurial skills and helps them to establish impor-tant business contacts. The goal

of this program is to help them be not only successful artists but also successful entrepreneurs.

Supporting opera in southeast-ern Europe: Together with the Austrian Ministry of Culture and the Vienna State Opera, in 2001 the Deutsche Bank Foundation created the CEE Opera Association to support opera houses in south-eastern Europe. Through scholar-ships to young artists, opera en-sembles in this part of Europe are able to survive. In addition, the op-era houses receive support en-abling them to participate in im-portant coproductions. In 2005, the project was awarded the Mae-cenas Prize for pioneering culture sponsorship.

What is love? This is the question pursued in “Sweet Yam Kisses,” performed at the Lyric Hammersmith Theatre

Since 2002, over 4,000 young people have participated in Zukunft@BPhil

“MATRIX OPERA/three miniatures” performed by members of the Academy Opera Today

Cultural Year of the Ten: Peter Konwitschny’s production of “Don Giovanni” has been a part of the Komische Oper Berlin’s repertoire since 2003. For one single evening, the opera’s ensemble was replaced by young singers from the ten new EU countries. The production, sponsored by the Deutsche Bank Foundation, was a contribution to the Cultural Year of the Ten, which presents a program of cultural events in Berlin by performers from the ten new EU member coun-tries.

Regional music sponsorships: The Deutsche Bank Foundation has been supporting ambitious contemporary music projects and regional music festivals for many years. Events sponsored include the Young Elite chamber music series of the Mecklenburg-West Pomeranian Festival, the European Festival in Passau, and concerts

by Ensemble Modern. For the first time, in 2005 the foundation supported the Bamberg Summer Opera, a European project for the promotion of young orchestra and opera talent.

Deutsche Bank Violin Concerts of Excellence: This is the title of a concert series supported for the past four years by Deutsche Bank in Switzerland. The project is based on a partnership with the Kayaleh Violin Academy, one of the world’s leading violin schools. Each year the academy accepts 15 to 20 tal-ented students from all over the world to receive training as con-cert soloists.

International Schiller Festival Mannheim: In 2005, the 200th an-niversary of Schiller’s death, the Deutsche Bank Foundation was a main sponsor of the 13th Interna-tional Schiller Festival Mannheim. The Mannheim National Theatre, which organized the festival, en-couraged young people to explore the work of Germany’s famous playwright through such projects as “Schoolchildren Act Schiller.” In addition, the Foundation sup-ported opera projects at the Schil-ler Festival, including the première of “Das Mädchen aus der Fremde” (“A Maiden from Afar”).

Deutsche Bank Foundation Support for regional music festivals 2005 (selection)

Society of the Friends of Bayreuth

Händel Festival Göttingen

Frankfurt Bach Concerts

Music of the Centuries: World New Music Festival, Stuttgart

Rheingau Music Festival

Ensemblia Mönchengladbach

International Bach Academy Stuttgart

Gustav Mahler Youth Orchestra, Vienna

Bremen Music Festival

*For further information see p. 98

Deutsche Bank Foundation* Cultural projects in 2005 by topicTotal: 50 projects, EUR 2.1 million

Music35 Projects48%

Other6 Projects

20%

Art9 Projects32%

Commitment to new, avant-garde musical forms: Ensemble Modern

“A Maiden from Afar”: The première of an opera based on two poems by Friedrich Schiller

Music 71

“My dream is for everyone at Deutsche Bank to view art as an enrichment in our daily lives.”

Nelius De Groot

25 Years of the Deutsche Bank Collection Nelius De Groot, investment banker at Deutsche Bank in London, works in an environment in which people constantly come into contact with art throughout the day: from the foyer to the offices on the upper floors, the Winchester House offers a variety of personal confrontations with a wide range of artistic styles and move-ments. The 38-year-old banker considers this daily interaction with the art of the Deutsche Bank Collection to be “chal-lenging and stimulating.” As a member of the UK Art Committee, Nelius De Groot is committed to providing staff with greater access to art through tours, exhibitions, and events: “We can use art as a bridge between the job and culture—perhaps even providing an impetus for staff to get involved in social issues in a positive and creative way.”

Art

“Art Has Become Part and Parcel of Our Daily Lives”25 Years of the Deutsche Bank Collection

When, at the end of 1979, Deut-sche Bank began to collect works of art and exhibit them in its branches and offices through-out the world under the motto “Art at Work,” this was consid-ered a revolutionary develop-ment. Today, the Deutsche Bank Collection comprises more than 50,000 works and has estab-lished itself as the world’s big-gest corporate collection. Max Hollein, director of the Städel Mu- seum and of the Schirn Art Hall in Frankfurt, and investment bank- er Nelius De Groot talk about their experiences with the Deut-sche Bank Collection.

Mr. Hollein, when you see Max Bill’s sculpture “Continuity” standing in front of the Deutsche Bank headquarters in Frankfurt, what associations immediately spring to mind?I am very familiar with the works of Max Bill, and this work is most certainly one of his greatest achievements. It awakens in me associations with eter-nity. It also stands in my opinion for Deutsche Bank’s close association with art—and for what the Bank gives back to society.

You are both an art historian and a graduate in business management. What is your opinion of the Deutsche Bank Collection, as one who is an expert in both these fields?As an art historian, I respect the collection as an outstanding achievement. It is most certainly the leading corporate collection in the world as far as works on paper are concerned. From a business management point of view, the collection is interesting in a number of ways. Because the Bank bought a large number of works before they became well known—for in-stance some outstanding pictures by Neo Rauch—it includes art whose market prices today would be considerably higher than they were back then. Yet the collection’s strategy is most certainly not primarily one of monetary appreciation. Such a collection is created through expertise—through a deep knowledge of and commitment to art. And through its purchases Deutsche Bank has also advanced many an artist’s career.

Mr. De Groot, as investment banker in the Winchester House in London, you are surrounded by imposingly visionary works of art, such as James Rosenquist’s monumental painting “The Swimmer in the Economist” in the foyer, which thematizes the tremendous acceleration of economic change. What are your experiences with “Art at Work”?

74

The Deutsche Bank Collection celebrated its 25th birthday with an exhibition at the Deutsche Guggenheim in Berlin: From classical modernism to contemporary art, selected from 25 patrons

Max Hollein, director of the Schirn Kunsthalle, the Städel and the Liebieghaus—Museum alter Plastik in Frankfurt am Main

The art in the Winchester House most certainly has both a pro-vocative and an inspiring effect on the staff members who work there. Because art is an integral constituent of our work environment, it has become part and parcel of our daily lives: people in the building are becoming increasingly interested in art. Overall, “Art at Work” has strengthened staff members’ per-sonal allegiance to the Bank. And it has also had a very in-vigorating effect on relations with our customers. When for instance they are taken into our conference rooms (each of which is dedicated to a different European artist) there is so to speak a ready-made topic of conversation at hand that can considerably facilitate communication. Our dialogue with cus-tomers is further strengthened by guided art tours through the Winchester House and by special art events that we orga-nize for customers.

Mr. De Groot, you are active in the Bank’s UK Art Committee, whose work you enrich with your ideas. What is especially im-portant to you in this work?From my perspective, the most important aspect of the Bank’s commit-ment to art is the way it increases our profile across multiple domains. One example of this is the Frieze Art Fair, which took place for the third time in October 2005 in London’s Regent Park. Deutsche Bank was the main sponsor of this event which sent a strong message about our sup-port of such an important forum for international contemporary art. Simultaneously, the event generated a lot of positive publicity that served to enhance Deutsche Bank’s image with staff, clients, and the public. Fos-tering interest in modern art through these types of events is a critical function of the Art Committee structure globally, and it is clear that they deliver both commercial and social benefits.

Mr. Hollein, the anniversary exhibition “25 Years of the Deutsche Bank Col-lection” in the Deutsche Guggenheim in Berlin was a most unusual event of its kind. What for you was particularly special about this exhibition? Visitors were able to see a lot of works that they would normally not get to see in the original. I was extremely impressed by how the collection, de-spite its immense variety, has been systematically developed and by how the Bank through its collection remains in tune with the times.

Art 75

“25 Years of the Deutsche Bank Collection”—Exhibitions: Deutsche Guggenheim, Berlin;

“Tokyo Blossoms. Deutsche Bank Collection meets Zaha Hadid,” Hara Museum of Con-

temporary Art, Tokyo; Curator: Ariane Grigoteit ■ Catalogues: “25—Visuell,” “Tokyo Blos-

soms. Deutsche Bank Collection meets Zaha Hadid,” “More Than Meets the Eye. Foto-

art from the Deutsche Bank Collection” (on tour through Latin America, 2006 – 08; Curator:

Friedhelm Hütte), ed. Deutsche Bank Art, Frankfurt/Main 2005 and 2006 ■ Information:

www.db-artmag.com; www.deutsche-bank-art.com; www.deutsche-guggenheim.com

Nelius De Groot, employee in Global Markets, Deutsche Bank London

The visionary exhibition architecture designed by the world-famous London architect Zaha Hadid

Deutsche Bank Collection: The corporation’s collection comprises over 50,000 works of art, most on paper. Aside from classical mod-ernism, contemporary international art is a principal focus of this col-lection, which celebrated its 25th anniversary in 2005.

Art at Work: Art may be seen “at work” in the Bank’s branches and offices all over the world. Deutsche Bank commissioned works from seven artists for the new ibc, lo-cated opposite the Frankfurt Trade Fair grounds. These may be seen in the “Art in the ibc” catalogue, orders at www.db-artshop.com.

Deutsche Guggenheim: In 1997, the Bank extended its commit-ment to art through the estab-lishment of the Deutsche Gug-genheim, a joint venture with the Solomon R. Guggenheim Foun-dation. The Berlin exhibition hall presents four annual exhibitions,

as well as works commissioned especially for the exhibition space, such as William Kentridge’s multi-media installation, which had over 30,000 visitors. In 2004/05 the commissioned works included an exhibition of new large format pic-tures by John Baldessari. In 2006, Hanne Darboven’s “Hommage à Picasso” will be exhibited.

Polish Art Prize: In 2005, the Deut-sche Bank Foundation, together

with the Zachęta Gallery in Warsaw and Deutsche Bank Polska S. A., invited young Polish artists to sub-mit entries for this competition for the second time. The finalists were chosen by a jury of artists, curators, and gallery owners, and they pre-sented their works in an exhibition in the fall of 2005. The first prize of EUR 10,000 went to Maciej Kurak. Artist Ania Orlikowska received a six-month working scholarship to study in Berlin.

Other Art Projects – A Selection

Title of exhibition or art fair Location

Art Cologne Cologne

Art of Tomorrow. Hilla von Rebay and Guggenheim Museum, New YorkSolomon R. Guggenheim

Arcadia of Modernism. 100 Years Neues Museum Weimar, Weimarof the Villa Romana in Florence

Günther Uecker Neuer Berliner Kunstverein, Martin Gropius Bau, Neue Nationalgalerie, Berlin

Robert Mapplethorpe and the Classical The State Hermitage Museum, Tradition St. Petersburg; House of Photography, Moscow

Tefaf Art Fair, Maastricht Exhibition & Congress Centre, Maastricht

The California Biennial Orange County Museum of Art, Newport Beach

Trisha Donnelly Kunsthalle Zurich

Rosemarie Trockel. Post-Menopause Museum Ludwig, Cologne

Deutsche Bank Award for Young Sculptors Deutsche Bank, Düsseldorf

Views 2005 Zachęta Gallery, Warsaw

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Maciej Kurak, Prize for Young Polish Artists 2005

Art Sponsorship in 2005 (selection)

William Kentridge in his studio working on his “Black Box/Chambre Noire”

A Century of the Villa Romana: Max Beckmann, Käthe Kollwitz, and Georg Baselitz have all been recipients of scholarships for the Villa Romana in Florence, for the most part in their early years as artists. To this day, up to four young artists are chosen every year to live and work for ten months in the Villa. The institution, founded by members of the German Artists’ Association, celebrated its centen-ary in 2005. The event was marked by an anniversary exhibition in the Neues Museum Weimar. Deutsche Bank has been supporting the Villa Romana since the 1920s.

Deutsche Bank Pyramid Awards: The awards provide financial sup-port, guidance, and practical train-ing to young graduates from Lon-don’s leading art schools. In the 13 years of their existence, the awards have helped make possible nearly 100 innovative business ven-tures ranging from design and art studios to theater groups. A key factor in the program’s success is the practical support the artists receive from Deutsche Bank staff members.

Arts and Enterprise: Deutsche Bank has committed USD 900,000 to this art and economic develop-ment initiative in the USA, whose aim is to use art to revitalize disad-vantaged neighborhoods. To date, six organizations, including Coney

Island USA, have each received USD 75,000 annually for two years.

The Gates: In February 2005, the world’s attention was focused on Christo’s and Jeanne-Claude’s installation in Central Park: “The Gates.” As a founding member of “The Gates Alliance for Central Park,” Deutsche Bank helped sup-port Nurture New York’s Nature (NNYN) through proceeds from the project. NNYN is a nonprofit organization dedicated to pro-moting sustainable development through environmental initiatives in New York City.

Frieze Art Fair: For the third year running, Deutsche Bank was the main sponsor of the Frieze Art Fair,

which took place in October 2005 in London’s Regent’s Park. Through a VIP lounge and a stand designed by artists Ursula Döbereiner and Kirstine Roepstorff, the Bank pre-sented its commitment to contem-porary international art. A total of 47,000 people visited the art fair, including 1,000 staff members, clients, and guests. Deutsche Bank has already pledged its support of the 2006 and 2007 Frieze Art Fairs. In 2005, the Bank was also active at the Tefaf in Maastricht and at Art Cologne.

Exhibition title Location

25 Years of the Deutsche Bank Deutsche Guggenheim, BerlinCollection – An Anniversary Exhibition

From a German Perspective – Masterpieces State Pushkin Museum of the Fine Arts,from the Deutsche Bank Collection Moscow

Dialogue Sculpture – Kunstforum Seligenstadt, SeligenstadtDeutsche Bank Collection

Miwa Yanagi – Mannheimer Kunstverein; NRW Forum, Deutsche Bank Collection Düsseldorf; Museum Moderne Kunst, Stiftung Wörlen, Passau

Exhibitions of the Deutsche Bank Collection in 2005

800

600

400

200

01 2 3 4 5

Deutsche Guggenheim Average number of visitors per day

1) John Baldessari (exhibition ended 01/2005)2) Jackson Pollock3) 25 Years of the Deutsche Bank Collection4) Douglas Gordon5) William Kentridge

319

710

434

561

690

Art 77

Frieze: 160 gallery owners present 1,000 artists

“I’d like to see more innovative concepts for urban living—that is why this kind of networking between companies, city authorities, and public and social institutions is so very important.”

Michael Lermer

New Networks

Common PurposeIn 2005, Michael Lermer, press officer at Deutsche Bank, participated in a training program for managers as part of the initia-tive “Common Purpose.” During the eleven days spent in this program, together with other representatives from a wide range of corporations and city authorities, he gained new insights into the challenges faced by city health, education, employment, cul-tural, transportation, and environmental bureaus (see p. 83). His conclusion from this experience: “We all have to broaden our perspectives if we are to overcome the great social and ecological challenges that face us in today’s metropolises.”

Shanghai: probably the most rapidly grow- ing city in the world. And Shanghai’s growth is accompanied by all the problems one would consequently expect, such as mass migration from the countryside, crowded living conditions in the city center with a population of 20 million people, and ex-ponential growth in vehicular traffic that threatens to engulf the city’s streets. But the megalopolis in the Yangtze delta is not the only city in the world facing such challenges. According to a report published by the United Nations, by the middle of this century more than half the world’s popula-tion will be living in cities. The growth of urban centers such as Shanghai, Mexico City, and Cairo is unprecedented in human history, and is bringing with it enormous challenges. “The growth of cities must be planned,” according to Wolfgang Nowak, Director of the Alfred Herrhausen Society (AHS). “Only then can we ensure that cities meet human needs with regard to the en-vironment, security, living conditions, and transportation.” In order to help people make the right decisions in achieving the necessary structural changes, the AHS has initiated a project entitled “Urban Age – An Investigation into the Future of Cities.” Together with the London School of Eco-

nomics and Political Science (LSE), the society is organizing a series of urban conferences over two years, at which experts and policy makers have the opportunity to discuss the problems of the city where each conference is taking place.

The New York conference in 2005, for example, focused mainly on the problems of commuting and of affordable living space for families. In Shanghai, topics included the migration of rural workers into the city, and in London urban development projects were discussed, including plans for the 2012 Olympic Village. The conference in Mexico City in February 2006 focused on security in the urban environment; in this megalopolis of 18 million people, rival clans now dominate urban spaces. Families are restricted to going to guarded shopping malls for leisure activities. Urban security will also be a focus of the conference in Johannesburg in July 2006. Beside these local problems, four general topics are included in the agenda of each Urban Age conference: living space, work, public space, as well as mobility and public transport.

Urban Age – An Investigation into the Future of CitiesBuilding networks of competence for sustainable urban development

80

Roughly half the population of Shanghai lives in a space corresponding to less than ten percent of the total urban area. In some city districts, the population density is more than 700 inhabitants per hectare.

Population density in Shanghai

Alfred Herrhausen Society (AHS): The international forum of Deutsche Bank, founded in 1992

to actively promote socio-political debate on current affairs ■ Board of Trustees: Josef

Ackermann (Chairman), Jean-Christophe Ammann, Sybille Ebert-Schifferer, Wolfgang Früh-

wald, Detlev Ganten, Anthony Giddens, Peter Gomez, Heather Grabbe, Tessen von Heydebreck,

Wolfgang Ischinger, Jürgen Jeske, Sergej Karaganow, Hans Werner Kilz, Charles A. Kupchan,

Joachim-Felix Leonhard, Eckard Minx, Jürgen Mlynek, Andrej Plesu, Bruce M. Ramer, Lynn

Forester de Rothschild, Stephan Sattler, Christoph Schwöbel, Haig Simonian, America Vera-Zavala,

George Weidenfeld ■ Topic of the Year 2005/06: “Urban Age – An Investigation into the

Future of Cities” ■ Partner: Cities Program of the London School of Economics and Political

Science (LSE) ■ Conference locations: New York, Shanghai, London, Mexico City, Johannes-

burg, Berlin ■ Information: www.alfred-herrhausen-gesellschaft.org; www.urban-age.net

New Networks 81

The participants at the conferences come from very different back-grounds. Beside international experts and local politicians, urban planners, administrators, and infrastructure managers, Deutsche Bank also invites its business partners to the discussions, thus offering them the opportunity to actively participate in the devel-opment of their respective cities. At the core of the Urban Age program is a committee of renowned experts who accompany the project throughout its lifespan. Richard Sennett, Professor of Sociology at the LSE, is a member of this committee, as is the Dutch architect Rem Kohlhaas and Sophie Body-Gendrot, Professor of Political Science at the Sorbonne. This international network will continue to exist even after the project has come to an end. At the concluding conference in Berlin in November 2006, a list of best practices assembled throughout the project will be published. The Urban Age project will thus be able to reach a much wider audience than the 100 to 150 participants at each of the individual conferences.A number of contributions to the project have already paved the way for concrete improvements, such as the “Delivering a Safer City Through Better Governance” initiative presented by the Mayor of Edinburgh at the European Mayors’ Conference—itself a constituent part of the Urban Age program. Through a purposefully conceived traffic training program, speed controls, and information events, the Scottish capital has succeeded in lowering the number of accident victims on the city’s streets by 70 percent.Because of the very positive reception of the Urban Age project, the AHS has decided to organize an additional event to comple-ment the original program. In May 2006, a conference in Halle, Germany, will examine another extreme: the problem of declin-ing urban populations. “When cities lose their equilibrium, so do people,” says Wolfgang Nowak. For Urban Age is concerned not only with growing cities, but also with those that are shrinking in size.

Richard Sennett, Professor of Sociology at the LSE

Sophie Body-Gendrot, Director of the Center for Urban Studies, Sorbonne

Rem Kolhaas (left) with Enrique Peñalosa, former Mayor of Bogotá

Wolfgang Nowak, Director of the AHS

82

“fore/sight” Conference: Germany is going through a period of radi-cal change. In these times of social uncertainty, the Alfred Herrhausen Society (AHS) helps provide guid-ance for the future: “fore/sight— Strategies for Tomorrow’s Society“ is the title of a new AHS conference series, whose goal is to define the main challenges that will face so-ciety in the future and to develop innovative strategies to meet them. The target group of the “fore/sight” conferences is above all the gener-ation currently in their 40s, which is in the process of taking over posi-tions of responsibility in business, politics, and the media. How does their vision of Germany differ from that of the generation in their 60s? Will a generational change lead to a shift in perspectives of the fu-

ture? The first panel of experts at the two-day conference in Weimar was made up of young German pol-iticians, who demonstrated a unity that transcended party boundaries and claimed a new political iden-tity for their generation: “Self-pres-entation is not our thing,” they de-

clared, adding that in order to push through necessary but unpopular reforms, one should be willing to risk defeat at the polls. This con-ference on Germany’s future also addressed the question of whether paying high dividends or creating jobs should be the chief goal of today’s global company, and how communal values can be upheld in a society which glorifies individ-ualism. “What we need is confi-dence and courage to commit our-selves to the future,” stated Josef Ackermann in his address in Wei-mar. However, only through dia-logue between the most influential groups in society can the deadlock that currently grips the country be resolved, he said, adding that the kind of dialogue between the worlds of business, politics, sci-

ence, culture, and the media that was taking place at this conference was setting an example for others to follow.

Joint Debates: In order to react rapidly to socio-political develop-ments, the AHS has complemented

its “Topic of the Year” and “fore/sight” conference series with a program of “Joint Debates.” These discussion events are being held in cooperation with the “Econo-mist” magazine and the German Institute for Economic Research (DIW Berlin).

Joint Forum: The “New Partner-ship between Politics and Eco-nomics—Corporate Responsibil-ity and Sustainable Development” conference in October 2005 in Shanghai made a significant con-tribution to the current debate in China on the importance of respon-sible business practices. The con-ference was organized in coopera-tion with DaimlerChrysler and the China Europe International Busi-ness School (CEIBS), China’s larg-est business college. The confer-ence was attended by 150 experts from the worlds of business and science, representing NGOs, gov-ernment, and the media. They in-cluded George Kell, head of the UN’s Global Compact; Benjamin Cashore, Professor of Sustainable Forest Policy at the Yale School of Forestry and Environmental Stud-ies; and Colin Grassie, CEO of Deutsche Bank Asia Pacific.

Further Initiatives – A Selection

Josef Ackermann in the accompanying exhibition at the Bauhaus University: “Atelier of the Future”

The film director and producer Taylor Hackford spoke on the flood of images in this day and age

Common Purpose: In this lead-ership development program initi-ated 17 years ago in Great Britain, leaders from a wide range of lo-cal government offices, local busi-ness, and corporations discuss the challenges they face in their local communities. For 11 days, they ex-amine diverse topics such as edu-cation, labor, health, the environ-ment, art, and culture. Through this coming together of such heteroge-neous spheres of experience, new forms of cooperation arise and in-novative solutions to communal problems are often developed. Ur-

ban authorities thus benefit from the interdisciplinary experience of the participants, and businesses benefit from improved networking and better qualified city authori-ties in the cities where they are lo-cated. The participants themselves broaden their horizons and thus improve their leadership qualifica-tions. In Germany, Deutsche Bank sends administrative leaders to the matrix programs in Frankfurt and Hanover. In the next few years the Bank will be supporting the de-velopment of the program in nine other cities in Germany by provid-ing start-up financing. Information: www.commonpurpose.org

Conference “What we can do now: New collaboration between busi-ness and education”: Education is a decisive factor in the future via-bility of modern societies. And here, too, business, bearing a special responsibility, is participating in a wide range of individual initia-tives. The goal of this conference— organized by the Deutsche Bank Foundation in April 2005 and at-tended by more than 200 repre-sentatives of corporations, private foundations, and educational insti-tutions—was to determine what practical contributions business can make to improve education in Germany. The Federal Minister of Education and Research, Annette Schavan, emphasized that educa-tion is the prime factor in creat-ing economic prosperity. Rainer Neske, member of the Group Ex-ecutive Committee of Deutsche Bank, called on government and business to unite to promote edu-cation. Information on the conference pro-gram and the speakers is available at www.deutsche-bank-stiftung.de

Deutsche Bank Prize in Finan-cial Economics: In 2005, Eugene F. Fama, Professor of Finance at the University of Chicago, received the first Deutsche Bank Prize in Financial Economics, awarded by the Center for Financial Studies at the Johann Wolfgang Goethe University in Frankfurt. Fama was honored for his theory of market efficiency, which today is the ba-sis of all decisions made in the world’s capital markets. The prize, which is awarded every two years, is for outstanding research that has had a significant effect on financial practices and economic policy. It is intended to promote the transfer of knowledge between the worlds of theory and practice. Intellectual potential is an impor-tant precondition for successful business. For this reason, Deutsche Bank supports finance research and teaching at Frankfurt Univer-sity, providing for this purpose EUR 5 million from the Deutsche Bank Donation Fund (see p. 59). This commitment includes the cre-ation of a program of postgraduate studies for young managers (the Executive Master of Business) and the establishment of a House of Finance at the University. Information:www.db-prize-financialeconomics.org

J. Ackermann and J. P. Krahnen, Director of the Center for Financial Studies, with E. Fama (center)

New Networks 83

Over 17,000 people have volunteered in Common Purpose in Great Britain

Tessen von Heydebreck emphasized the growing significance of the work of foundations for education

“I wish that people with differing talents could actively complement each other so that in the end, all can enjoy equal opportunities.”

Esperanza Cerdan

The Project ShoreditchDeutsche Bank has pledged its support to an urban development initiative in the London ward of Shoreditch that focuses on sustainable development and practical support for the people who live there. Put-ting her guiding principle of “help people, don’t pity them” into practice, Esperanza Cerdan, who works in the Global Markets division at Deutsche Bank, volunteers sev-eral hours of her time each week for this project—providing support and advice to African immigrants. Her reward, as she says, is that “these people show me how the world can be changed for the better.”

Volunteering

Nowhere else in Great Britain do social conditions pro-vide such stark contrasts as in the heart of London. While the City of London continues to assert its position as the richest urban area in the kingdom, the neighboring district of Shoreditch is one of the most neglected parts of the country. A traditional immigrant quarter, Shoreditch suf-fers from the problems typically associated with such a neighborhood.

Household incomes are only half of the average for the country as a whole. Every third household in Shoreditch has to receive subsidies of some kind to survive. At 16 percent, unemployment is twice the London average and is even higher among ethnic minorities. Of particular concern are the limited opportunities for children and young peo-ple. A recent survey of schoolchildren in the Metropolitan Borough of Hackney, in which Shoreditch lies, revealed that 80 percent of the children are of non-British nation-ality, and that 88 languages are spoken in the schools be-sides English—which many of the children have scarcely mastered.

Despite massive commitment, government institutions have not yet succeeded in exhausting all possibilities for sustainable growth in Shoreditch, and volunteer organi-zations usually lack personnel and management skills. Deutsche Bank CSR UK has recognized the urgent need

to help the people of Shoreditch and has for several years been active in the East London Business Alliance (ELBA). This umbrella organization includes a number of institutions and corporations who are working to-gether on a range of programs to improve the quality of life and provide educational opportunities for people living in London’s East End. Together with the law firm Linklaters, the Swiss bank UBS, the Shoreditch Trust, and ELBA, Deutsche Bank staff members have been volunteering their time and talents in the service of the people and institutions of Shoreditch since May 2005.

One of these volunteers is Esperanza Cerdan, who works for the Deutsche Bank’s Global Markets sector, and who in her free time supports the “Senegambian Community” in Shoreditch in its efforts to achieve, among other things, official recognition as a charity. Her management skills are in demand for a wide range of tasks, from filling out forms to creating business plans. And as a positive side effect, “I have learnt a great deal about

Opening a Window onto New ExperiencesBank staff members improve the quality of life and education in the London ward of Shoreditch

Over 100 employees volunteer with young people: Raising their self-confidence …

… or playing chess

Esperanza Cerdan (left) with employees from the Sene Teranga Foundation

86

the culture of the Senegalese and Gambians—and about the regula-tions that govern charitable orga-nizations,” says Esperanza Cerdan, who comes from Spain.

The volunteers’ skills are in demand in a number of areas, for instance in helping people to apply for jobs or to create a business plan. Other tasks include giving legal advice or providing assistance in compil-ing publicity material. Long-term volunteer tasks may include help-ing children to learn to read and write, working on boards of trustees, or advising representatives of local organizations.

Although the initiative has not been in existence for very long, more than 500 staff members from the three participating firms have already volunteered their services to assist 24 different organizations in their work. Not only do the people of Shoreditch profit from this commitment, so do the volun-teers themselves. For Esperanza Cerdan, the experience has “opened up a window to new cultures, new ideas, and new ways of thinking.”

Deutsche Bank’s social commitment is highly esteemed in London. At the end of 2005, for the third time the Bank was awarded the cov-eted “Corporation of London Dragon Award,” this time in the “Economic Regeneration” category. In addition, the Bank received the “Community Links Trustees Award” for its long-term program in support of underprivi-leged young people in the London district of Newham (see p. 96).

The Shoreditch Project: Urban development initiative in the London ward of Shoreditch,

supported since May 2005 by Deutsche Bank CSR UK, in which staff members volunteer their

time and skills ■ Partners: Linklaters, UBS, Shoreditch Trust, ELBA ■ Participation: More

than 500 staff members from the three participating firms ■ Banking on Shadwell: In addi-

tion, in cooperation with Cityside Regeneration and ELBA, Deutsche Bank has committed its

support to the district of Shadwell in London’s East End. Since 2001, 970 staff members have

volunteered; 150,000 people living in Shadwell have benefited from the project ■ Information:

www.communityuk.db.com; www.elba-1.org.uk; www.shoreditchtrust.org.uk

Volunteering 87

Days volunteered by staff, by region in 2005

North and South America1 0 883 1,072 1,955

United Kingdom2 2,017 307 1,315 3,639

Germany1 169 166 695 1,030

Asia1 0 0 505 505

Africa1 0 26 0 26

Total 2,186 1,382 3,587 7,155

Region Days volunteered

Paid Own time/ Initiative plus and Total work spare Community Awards/ time time Financially supported projects in own time

1 There is no policy for volunteering during work time2 Two days paid leave granted for volunteering

Dragon Award winner 2005: Kate Cavelle, Director, Corporate Social Responsibility UK, together with the Lord Mayor Michael Savory (first row, 1st and 2nd from left)

Jobs for the long-term unemployed— the Hoxton Apprentice Restaurant(www.hoxtonapprentice.com)

Mentor plus: In Germany in 2005, Bank staff members acted as men-tors for a total of 60 young people making the transition from school to work. In this program, there are two models: one with highly moti-vated and talented children of im-migrants who have been selected by the Hertie Foundation; and the other is for secondary school stu-dents from socially disadvantaged areas nominated by the Offenbach Sponsorship Model. The propor- tion of students who have entered a profession from participating secondary schools in Offenbach has increased since the beginning of the mentoring program from three percent in 2004 to over ten percent in 2005.

StreetWise Partners: In the USA, our staff volunteer for the non-profit organization StreetWise Part-ners. They work as mentors, advis-ing unemployed or underemployed people who wish to improve their employment chances. The mentors teach computer skills, help com-plete job applications, and provide career planning tips.

Business on the Curriculum: To-gether with a group of non-profit

organizations, Deutsche Bank CSR UK supports business on the cur-riculum preparing young people to enter the world of work. In work-shops as well as in mentoring and practical training programs, 75,000 schoolchildren were able to gain valuable practical experience in 2005. Some 30 Bank employees volunteered their services to the project, giving presentations in schools, passing on their experi-

ence, and providing the school-children with insights into work-ing life.

Initiative plus: In a Bank-wide pro- gram, employees that volunteer in their own time can apply for an “Initiative plus” grant of up to EUR 500 per person (USD 500/GBP 300), or EUR 2,000 per team. The money is donated to the orga-nization at which the employee vol-unteers. The Initiative plus scheme was founded in 2001, and 6,546 employees have participated in the program to date.

Other Volunteering Initiatives – A Selection

Initiative plus Number of participating staff members and total grants in 2005

Germany 530 EUR 235,000

Great Britain 650 GBP 97,550

USA 482 USD 83,000

Latin America 268 USD 134,000

Asia 266 USD 79,800

Curious about the sea: Through Initiative plus, Ute Meyer-Stähling enabled a kindergarten in Essen to visit an aquarium

What should I wear for a job interview? Counseling day for secondary school students from Offenbach

Business on the Curriculum: More than 80 Bank employees teach PC skills in schools

88

Community Awards: Through the Community Awards, the Bank supports the volunteering activi-ties of its staff members in Great Britain and recognizes particularly outstanding achievements in this field. Staff members who work as volunteers in a non-profit organi-zation can nominate the latter for an award up to the value of GBP 1,000. In 2005, the Bank gave 54 such awards, as well as four spe-cial awards, totaling GBP 64,000. This adds up to 9,254 volunteer hours that benefited over 10,000 people.

Charity of the Year: Deutsche Bank UK and its staff members do-nated and collected GBP 410,000 for their Charity of the Year 2004/05, Great Ormond Street Hospital Chil-dren’s Charity. In 2005/06 the Brit-ish Red Cross is the benefactor of their fundraising efforts and it is hoped that the money they raise will support four mother and child clinics in Somalia over the next four years, providing health care for over 230,000 people. Later in 2006, SPARKS (the children’s med-ical research charity) will become the new Charity of the Year.

Habitat for Humanity: Deutsche Bank Americas is a partner of this non-profit organization, which pro-

vides housing for those with low income. Bank staff joined in a proj-ect organized by Habitat for Hu-manity to build housing for vic-tims of Hurricane Katrina. Together with the project’s sponsors, NBC and the Warner Music Group, they joined hundreds of other volun-teers in putting together 46 pre-fabricated houses for transporta-tion to the devastated region.

Disaster Relief (see p. 60 et seq.): Through donations and relief ef-forts initiated by staff, Deutsche Bank Americas has actively pro-

vided support to the victims of Hurricane Katrina and of the earth-quake in Pakistan. For instance, 620 schoolchildren from the New Orleans city district of Houston’s Spring Branch each received a USD 100 voucher for school sup-plies. In New York, staff members of the Equity Division donated a whole day’s commissions and thus raised USD 1.8 million for recon-struction work. In addition, em-ployees sent financial support to families who had fled the disaster area. The proceeds of a charity sale went to the Citizens Foundation for the victims of the earthquake in Kashmir and to Habitat for Hu-manity for reconstruction projects on the Gulf Coast.

Social Days: On such days, en-tire departments at the Bank vol-unteer together in their local com-munity. For instance, in London in the summer of 2005, 150 train-ees cleaned up a city park in the

Trees for Cities project. In Frank-furt, trainees renovated two kinder-gartens. And some 100 staff mem-bers in Singapore helped children in need and collected money for a school.

Special Olympics: For 31 employ-ees in Japan, the Special Olympics World Winter Games 2005 in Na-gano were a very memorable occa-sion. As volunteers, they assisted in making the Olympics a success for 2,600 mentally challenged sports-men and -women from 84 different countries. They organized transpor-tation for the athletes, assisted at sporting events, and provided sup-port for country delegations, for ex-ample.

Tsunami aid in Sri Lanka: Staff estab-lished their own relief committee

Tessen von Heydebreck at the CSR department’s “Social Day”

Team building and social commitment: A kindergarten class tests its five senses with Bank trainees

Volunteering 89

“I’d like to see companies living diversity on a daily basis.”

Wilhelm von Haller

Women at Deutsche Bank “Challenge them and support them,” is the maxim Wilhelm von Haller follows in dealing with his staff members. For the Managing Director of Deutsche Bank and member of the Management Board for the German market region Southwest, it makes no difference whether he works with male or female colleagues. In his ex-perience, every staff member has individ-ual strengths and weaknesses—whether male or female. “And it is precisely the dif-ferences in origin, gender, religion, age, and family status that enriches our daily work together and challenges each one of us,” says Wilhelm von Haller.

Corporate History

92

Women in Leading PositionsFrom the switchboard to the boardroom: the long journey through the decades

A male colleague once referred to Ellen Ruth Schneider-Lenné as “the best man on the board.” Other colleagues remember her as “capable, compassionate, likeable, and very assertive,” according to Angelika Raab-Rebentisch, head of Deutsche Bank’s Historical Institute. What is indisput-able is that this business graduate was the first woman to be appointed to the managing board of a large German bank. For eight years—from 1988 to her death in 1996—this native of Berlin carried out her executive respon-sibilities with great élan.

How times change: In 1914 a Bank employee in Berlin said disparag-ingly of his female colleagues, “The feminist attitude of some of the ma-jor banks is deplorable.” Today Wil-helm von Haller, Managing Director of Deutsche Bank in Stuttgart, re-grets that relatively few female can-didates apply for top positions in the Bank—an unbelievable notion when Deutsche Bank was founded in 1870. At the end of the 19th cen-tury, women were still finding it dif-ficult to get any kind of work in a bank. Right up into the middle of the 1920s banking was still very much a man’s world. “The prevail-ing opinion was that ‘women should be planning their future as wives

and mothers and not as careerists in a hectic and joyless profession’,” according to historian Lothar Gall in a lecture on women at Deutsche Bank.1

Only during the First World War and the subsequent period of inflation, which created a greater demand for office personnel, did women begin to enter banking in comparatively large numbers. For the most part, they worked as secretaries and operators. Then the Great Depression and the rise of National Socialism radically reduced career opportunities for women. At first the National Socialists appealed to popular resentment against women in the workforce and propagated the ideology of the woman’s place being in the home, caring for her husband and children. But after 1936 there was a shortfall in labor power, which was increasingly made up by employing women. In Deutsche Bank, too, the number of female staff members began to rise significantly from this year onwards.

In the wake of the women’s liberation movement of the 1960s, a further significant shift in attitudes towards women at work took place. “As a reac-tion to social change,” according to Angelika Raab-Rebentisch, in 1973/74

Transfer payments department, Hamburg, 1929

Transfer payments department, Hamburg, c. 1920

Employees in Hamburg, 1920s

1 Lothar Gall: Women in the Bank—A Historical Retrospective, Frankfurt, 2004 (accessible at www.banking-history.com)

93

the Bank started a campaign to promote “Women in Leading Positions,” with the result that, in 1974, a third of the Bank’s trainees—its future “High Potentials”—were women.

As of June 2005, 44.8 percent of the Bank’s employees were women. Globally, 14.8 percent of top management positions in Deutsche Bank are occupied by women, making the Bank a comparative leader in this field: According to statistics published by the German Federal Government, in companies with more than 500 employees, four percent of top man-agement positions and 12 percent of those in second-level management are occupied by women. Nevertheless, Deutsche Bank is by no means resting on its laurels. Aletta Gräfin von Hardenberg, Director of Human Resources/Global Diversity, sees increasing women’s opportunities of pro-motion to top management positions as one of her chief priorities. To this end, Deutsche Bank has initiated a range of projects and initiatives. Net-works such as Women in European Business, for instance, help women to make contacts and increase their profile as managers. “I am always seeing women being too task-oriented and forgetting how important it is to make themselves known,” observes Aletta Gräfin von Hardenberg. Mentoring initiatives represent another opportunity for women to gain experience in promoting their careers: Women who have just assumed or are about to assume their first management positions are accompanied for a certain span of their careers by more experienced professionals—sometimes even from other companies. Since 1998, the Bank has been participating in a mentoring program that embraces a number of com-panies including DaimlerChrysler, Lufthansa, and Deutsche Telekom. Ulti-mately, the Bank aims to help women become successful leaders by fol-lowing the examples of those who have gone before them. And Ellen Ruth Schneider-Lenné, with her purposeful manner, is most certainly an out-standing example for women shaping a career in today’s world to follow.

Historical Institute of Deutsche Bank: Founded in 1996 to conduct research into the history

of Deutsche Bank and to preserve its historically important collection of documents. Succes-

sor to the Deutsche Bank Historical Archive that had existed since 1961 and consists of some

5,000 meters of shelves of historical records; all archives from 1848 to 1945 inclusive are open

to the public for research purposes ■ Current focuses of research: History of Deutsche Bank

in the Far East and North America and its role in the period of National Socialism ■ Historical

Association of Deutsche Bank e. V.: Founded in 1991 to communicate the history of German

and international finance to the general public ■ Further information: www.deutsche-bank.

com/history; www.banking-history.com

Women in Leading Positions campaign, 1973/74

Booking department, Berlin, 1957

Corporate History

Deutsche Bank Foundations and Charitable Institutions

96 Deutsche Bank Americas Foundation 96 Deutsche Bank Corporate Social Responsibility UK 97 Deutsche Bank Africa Foundation 97 Deutsche Bank Asia Foundation 98 Deutsche Bank Foundation 99 Alfred Herrhausen Society 99 Academy Opera Today 100 Deutsche Bank Donation Fund in the Donors’ Association

for German Science 100 Historical Institute of Deutsche Bank

101 Prizes, Awards, and Rankings 2005 102 Corporate Goals and Measures 104 About This Report (GRI-Index) 106 Imprint/Publications

Appendix

95 The “Corporate Social Responsibility” Department

The “Corporate Social Responsibility” Department

The “Corporate Social Responsibility” Department

Frank Trümper(Global Head of CSR)

Hanns Michael HölzMichael Münch(Co-Heads of CSR)

Corporate Social Responsibility (CSR) is a corporate center function, reporting directly to the Management Board of Deutsche Bank. Its tasks are to champion responsible business practices and to raise awareness of the Bank’s commitment to society, as well as to define guidelines for the implementation of these goals and to support such activities in the Bank’s business units and regions. Five foundations represent CSR across the globe, and help to implement the Bank’s global strategy as a corpo-rate citizen: the Deutsche Bank Foundation, Corporate Social Responsibility UK, the Deutsche Bank Americas Foundation, the Deutsche Bank Africa Foundation, and the Deutsche Bank Asia Foundation. The Alfred Herrhausen Society is Deutsche Bank’s international forum, and it organizes meetings and discussions among experts from politics, business, and science on current social and political issues. In addition, the CSR department includes several globally active groups: the Sustainable Develop-ment Group, which, among other things, is responsible for the Bank’s Sustainability Management System; Deutsche Bank Art, which among other things looks after the corporate art collection; and the Historical Institute of Deutsche Bank. In addi-tion, CSR is responsible for activities supporting higher education and research as well as for Corporate Volunteering, which is the global coordination of the Bank’s volunteering programs. Deutsche Bank also has a group-wide policy on donations, memberships, and sponsorships, which is coordinated within CSR.

www.deutsche-bank.de/csr

Vorstand

Other Corporate Center Functions

Communications and Brand

Communications

CSR(Corporate Social

Responsibility)

Investor Relations

Human Resources

Central CSR Departments

Historical Institute

Sponsoring & donations by the Bank for cultural/social activities

Deutsche Bank Art

Sustainable Development Group

Corporate Volunteering

Global Diversity

Alfred HerrhausenSociety – The inter-national forum of Deutsche Bank1

Deutsche BankFoundation2/3/

Academy Opera Today

Deutsche Bank Africa

Foundation2

Deutsche BankCSR UK4

DB AmericasFoundation and

CommunityDevelopment

Finance Group5

Deutsche Bank Asia Foundation

1Non-profit LLC2Foundations that are an independent legal entity under German civil law3 On January 1, 2005, the Deutsche Bank Foundation Alfred Herrhausen Helping People to Help Themselves (founded 1987) and the Cultural Foundation of Deutsche Bank (founded 1995) were merged to form the Deutsche Bank Foundation

4Deutsche Bank Citizenship UK was renamed Deutsche Bank Corporate Social Responsibility UK 5Incl. Deutsche Bank Microcredit Development Fund (DBMDF)

CSR Organizational Chart

Management Board

95

Promotion of higher education/ Deutsche Bank Donation Fund

96

Deutsche Bank Americas Foundation

Program: The Foundation’s work focuses on community development projects, education programs, and initiatives for fostering intercultural understanding. Moreover, the Foundation includes the center of competence for Deutsche Bank’s global microfinance programs. Unlike the Deutsche Bank Foundation, the activities of the Americas Foundation are not financed by profits from foundation capital, but solely from Bank donations. The Foundation’s work is complemented by the Community Development Finance Group (CDFG), which supports economically disadvantaged communities with loans and investments. Furthermore, the CDFG develops financing strategies and coordinates overall financing for collabora-tive projects, such as modernization of buildings and schools. The Foundation’s efforts far exceed the minimum that is legally required in the USA and was again assessed as “outstanding” by the U.S. government in 2005.

www.community.db.com

Program: Corporate Social Responsibility UK is a business unit of Deutsche Bank UK, which pursues charitable goals just like an independent foundation would. It primarily supports projects in disadvantaged areas of London through its numerous vol-unteer programs and by working closely with non-profit partner organizations. In 2005, CSR UK received a “Big Tick” Award from the organization “Business in the Community” for its investment in education through the “Deutsche Bank Spotlight Awards.” For the third time, Deutsche Bank received the “Corporation of London Dragon Award” for its outstanding social initiatives in the UK in 2005, this time for our economic revitalization programs in East London.

www.communityuk.db.com

Chairman:Seth H. Waugh

President: Gary S. Hattem

Board Members:Jacques BrandJorge CalderonHanns Michael HölzEdward JonesCarlos PadulaRichard Walker

Deutsche Bank in London (DBiL) Board

Chairman:Charles Aldington

Board:Elaine Bartleet Kate CavelleClaude Cochin-De-BillyIvor DunbarHanns Michael HölzJoanna MeagerMark PrestonElizabeth Warren (until Jan. 31, 2006)

Peter Wyllie Management CSR UK: Kate Cavelle

Corporate Social Responsibility UK*

Corporate Social Responsibility UK

Founded: 1989; successor to the charity program of Morgan Grenfell, Ltd, which was acquired by Deutsche Bank in 1989

Commitments 2005: EUR 4.5 million

Deutsche Bank Americas Foundation

Founded: 1999; successor to the Bankers Trust Foundation after Bankers Trust was acquired by Deutsche Bank

Commitments 2005: EUR 15.0 million, financed by donations from Deutsche Bank

*Deutsche Bank Citizenship UK has been renamed Deutsche Bank Corporate Social Responsibility UK

Deutsche Bank Foundations and Charitable Institutions 97

Program: The Deutsche Bank Africa Foundation focuses on education programs. The Foun-dation supports NOAH, an education project for AIDS orphans, and the Educa-tional Development Program (EDP) in South Africa. This holistic initiative supports schools in economically underdeveloped communities to help them enlarge their educational programs. In this context, the Africa Foundation intensified its part-nerships with two schools in Tembisa in 2005: the Masisebenze Comprehensive School and the Zitikeni Secondary School.

www.db.com/csr/en

Program: Deutsche Bank established the Deutsche Bank Asia Foundation in December 2003 in order to create an independent anchor for its long-term commitment in Asia. Its main aim is to contribute to stable social and economic conditions necessary to guarantee a healthy environment for future generations. Like the Africa Foundation, the Asia Foundation focuses on regional education programs for orphans who have lost their parents to AIDS. It also supports local education projects, involvement in “Initiative plus” (Deutsche Bank’s global employee volun-teering program), and disaster relief initiatives. In cooperation with the Deutsche Bank Foundation, the Deutsche Bank Asia Foundation coordinates part of the assistance to the victims of the tsunami in Asia (see p. 60 et seq).

www.db.com/csr/en

Board of Trustees:Martin Kingston(Chairman)

Colin BrownNiall CarrollLindi GaddSivi GoundenHanns Michael HölzTamzin RactliffeNiall SmithStephen van CollerMurray Winckler

Management:Colin Brown

Management:Michael West

Deutsche Bank Africa Foundation

Deutsche Bank Africa Foundation

Founded: 2001

Foundation capital: EUR 16.4 million

Commitments 2005: EUR 0.6 million

Deutsche Bank Asia Foundation

Deutsche Bank Asia Foundation

Founded: 2003

Budget 2003–2007: EUR 5.0 million

Commitments 2005: EUR 1.0 million

*Deutsche Bank Citizenship UK has been renamed Deutsche Bank Corporate Social Responsibility UK

98

Program:The Foundation focuses on the fields of education, community development, music, and art. In particular, the Foundation supports education projects that con-nect economics and the arts. These kinds of “cultural education” programs aim to make learning fun and to help young people recognize and reach their potential. In addition, support for universities as well as regional art and music programs play an important role. Through the Alfred Herrhausen Fund “Helping People to Help Themselves,” the Bank’s traditional commitment to helping people in need and to supporting disadvantaged youths has a firm place in the work of the Deutsche Bank Foundation. The Foundation also provides rapid, unbureaucratic assistance in cases of emergency.On the occasion of the fusion between the Deutsche Bank Foundation Alfred Herrhausen Helping People to Help Themselves and the Cultural Foundation of Deutsche Bank, the Foundation organized a conference entitled “Was jetzt schon geht: Neue Kooperationen von Wirtschaft und Bildung” (“What we can do now: New collaboration between business and education”) in Berlin on April 14, 2005. Around 200 representatives from the business community and from the edu-cational sector attended to discuss how businesses can play an active role in improving the education situation in Germany. Four forums investigated success-ful examples of cooperation in the areas of integration, qualification, community commitment, schooling, and business (see p. 83).

www.deutsche-bank-stiftung.de

Deutsche Bank Foundation

Founded: 2005, through the fusion of the Deutsche Bank Foundation Alfred Herrhausen Helping People to Help Themselves (founded 1987) and the Cultural Foundation of Deutsche Bank (founded 1995)

Foundation capital: EUR 120.0 million

Commitments 2005: EUR 5.6 million

Total commitments 1987–2005: EUR 98.8 million

Deutsche Bank Foundation

Board:Tessen von Heydebreck(Chairman)

Frank Trümper(Deputy Chairman)

Michael MünchPeter SpitzeChristian J. Stronk

Stiftungen und gemeinnützige Gesellschaften der Deutschen Bank

Program: The Alfred Herrhausen Society (AHS) is the international forum of Deutsche Bank. It seeks traces of the future in the present and brings together experts from poli-tics, business, science, and culture who are committed to the future of civil so-ciety. The AHS’s work is dedicated to continuing the work of the former Spokes-man of the Management Board of Deutsche Bank, Alfred Herrhausen, who was assassinated by terrorists in 1989. Over the course of his life, he was an advocate of the responsibilities that business has toward society. Numerous conferences, discussions, and publications on topics such as education, tolerance, Europe, and governance have marked the AHS’s active participation in socio-political debates over the past few years (see p. 80 et seq.).

www.alfred-herrhausen-society.org

Program: Each year, the Academy Opera Today grants 15 scholarships to promising new conductors, directors, theater managers, and producers in opera. Discussions, insights into praxis, exchange of experience, and networking are the focus of the biennial support program which grew out of a university initiative. Throughout their studies and professional careers, the scholarship holders—in an interdisci-plinary framework—visit productions and international festivals, organize discus-sions with experts, and participate in workshops. The Academy’s objective is to enhance the opera as a contemporary art form beyond the limits of individual opera houses.

www.musiktheater-heute.org/english

Alfred Herrhausen Society

Alfred Herrhausen Society

Founded: 1992

Budget 2005: EUR 2.2 million Financed by donations from Deutsche Bank

Topic of the Year 2005/06: “Urban Age – An Investigation into the Future of Cities”

Academy Opera Today

Academy Opera Today

Founded: 2001

Budget 2005: EUR 0.2 million

Total activities to date: Support for 76 scholarship holders

Executive Board:Wolfgang NowakNorbert Walter

(Board of Trustees, see p. 81)

Managing Directors:Michael MünchFrank Trümper

Program coordination:Sonja EckerCatherine Sondermann

(Board of Trustees, see website)

Deutsche Bank Foundations and Charitable Institutions 99

100

Deutsche Bank Donation Fund in the Donors’ Association for German Science

Board:Josef AckermannAndreas Schlüter

Representatives:Michael MünchHeinz-Rudi Spiegel

Management:Angelika Raab-Rebentisch

Program: The Deutsche Bank Donation Fund is a fiduciary foundation operating in the Donors’ Association for German Science. The Fund provides financial resources to promote and support national and international research and teaching. The funds come from an annual donation by the Bank as well as from interest and dividends from the foundation’s capital. Deutsche Bank allocates 50 percent of the funds, while 50 percent is assigned to projects and tasks by the Donors’ Association (see p. 59).

www.stifterverband.de

Program: The Historical Institute takes a critical look at Deutsche Bank’s history, through its own research as well as through research undertaken by independent scholars. Since 1961, the Bank has maintained its own historical archive, and all archival material from the period up to 1945 is available to the public. In 1997, an inde-pendent commission was set up to explore the role of Deutsche Bank during the Third Reich, and a summary of its findings was published in 2003. Additional research topics include the relationship between banking and politics, the devel-opment of Deutsche Bank’s corporate culture, as well as the history of Deutsche Bank in East Asia and North America.

www.deutsche-bank.com/history www.banking-history.com

Deutsche Bank Donation Fund

Founded: 1970

Foundation capital: EUR 10.7 million

Commitments 2005: EUR 4.9 million

Historical Institute of Deutsche Bank

Historical Institute of Deutsche Bank

Founded: 1961 (as the Deutsche Bank Historical Archive)

Historical Association founded in 1991 as a non-profit organization dedicated to of Deutsche Bank: familiarizing the public with the history of banking in general

Appendix 101

Big Tick AwardAward from the organization Business in the Community for the “Deutsche Bank Spotlight Awards” (see p. 64) in the category “Investing in Education.”

Bridges to Understanding AwardAwarded by the Jewish Museum in New York in recognition of Deutsche Bank’s commitment to New York, the arts, and cross-cultural understanding.

Corporation of London Dragon AwardIn the category “Economic Regeneration” for Deutsche Bank’s efforts in the UK: The Bank supports sustainable businesses in a number of programs, helps young entre-preneurs from disadvantaged social back-grounds, and creates new jobs. This was the third time that the Bank received the well-known Dragon Award by London’s Lord Mayor. Community Links Trustees Award Presented for Deutsche Bank’s long-term support program for disadvantaged youth in Newham, East London.

Courageous Corporate Champion AwardThe New York City Gay and Lesbian Anti-Violence Project (AVP) named Deutsche Bank a “Courageous Corporate Champion” in 2005. The members of the “Rainbow Group,” an employee network, have supported important AVP projects for a considerable time, among them large- scale donation projects (see p. 36).

Success Factor Family 2005As a member of the “Forum Frauen in der Wirtschaft” (Women in Business Forum), Deutsche Bank won the prize for a family- friendly human resources strategy, pre-sented by the Ministry for Family Affairs, Senior Citizens, Women, and Youth.

Erwin Piscator Honorary Award 2006Awarded by Elysium – Between Two Conti-nents, Inc. for the exemplary philanthropic activities and community development ini-tiatives for disadvantaged communities by the Deutsche Bank Americas Foundation.

Fortune Magazine Top 50 Employers for Women As part of a review of the most important companies in U.S. Fortune Magazine, Deutsche Bank was named one of the top 50 employers for women.

Human Rights Campaign – 2005 Corporate Equality IndexPerfect score rating of 100 on the Human Rights Campaign Corporate Equality Index (CEI), which rates major corporations on their track records toward lesbian, gay, bisexual, and transgender employees, consumers, and investors.

Golden Peacock Global Award for Corporate Social ResponsibilityAwarded by the World Council of Corporate Governance: The award, which was estab-lished in 1999, is presented for companies’ long-term commitment to ethical behavior, economic performance, social responsibil-ity, and responsible use of resources.

Internationaler Sponsoring Award Awarded in the category “Sport Sponsoring,” presented by the Sponsoring Association for Germany and Switzerland (FASPO) and the Communication Association for Deutsche Bank’s long-term commitment to golf.

Maecenas Prize for Arts SponsorshipsAward in the category “Concept” for the Deutsche Bank Foundation’s support to the project “Central and Eastern European Musictheater” (see p. 70). The independent Austrian Business Committee for the Arts in cooperation with the ORF has been awarding this prize to exemplary and future-oriented cultural sponsoring for 16 years.

On Stage at The MetAt the occasion of the 20th anniversary of On Stage at the Met, Josef Ackermann was honored for his engagement for the Metropolitan Opera in New York and for Deutsche Bank’s overall commitment to the arts.

Opportunity NowGold Standard for “exceptional work in the field of gender equality” within the scope of the Opportunity Now Benchmarking survey.

“Outstanding” RatingIn the framework of the review of the Community Reinvestment Act by U.S. regulatory authorities, Deutsche Bank’s efforts on behalf of economically disad-vantaged communities were again named “outstanding.” Since the first review in 1992, the Bank has steadily received high recognition, as its efforts far exceed the legally required minimum (the Community Reinvestment Act obliges financial services providers in the U.S. to support economi-cally disadvantaged communities by dona-tions, investment and loans).

Mayor’s Award for Arts and CultureAward for the Deutsche Bank Americas Foundation’s support for the arts in New York.

Partnership AwardAward by the Department of Education of the Philippines for Deutsche Bank’s efforts to steadily improve the quality of education in the Philippines.

SIA Diversity Leadership Award for Sustained LeadershipSecurities Industry Association’s Diversity Leadership Award for the Women on Wall Street™ conference and for Deutsche Bank’s related initiatives for women.

Stonewall Corporate Equality IndexThe Stonewall Equality Index ranks companies according to factors such as equal opportunities regulations, equality regarding benefits, and recruiting from a broad pool of supporters. Deutsche Bank was ranked 66 of the top 100 employers in the UK.

Total E-Quality AwardFor the third time in a row, Deutsche Bank won the Total E-Quality Award for its diversity initiatives and its family-friendly work environment.

Working Mother Award 2005For the fourth time in a row, Deutsche Bank was named one of the 100 best companies for working mothers by “Working Mother Magazine.”

Prizes, Awards, and Rankings 2005

102

We have set goals for 2006 and beyond in order to further develop sustainability-related issues. This table gives an overview of several of these goals. For information on other goals and measures as well as milestones we have already reached, please see the Sustainability Management section of this report (on pages 4 et seq.).

Shareholders

Dialogue with sustainability- oriented rating agencies

Communication with the capital markets

Inform SRI investors

Clients

Extending the number of sustainable investment opportunities in the area of Private Wealth Management

Winning new customers and retaining customers

Expansion of our geographical presence

Staff

Investment in knowledge, training, and skills of our staff

Increase of the number of women in leading positions

Supporting our staff’s employ- ability and strengthening their abilities to accept and embrace change

Supporting the work-life balance

Corporate Goals and Measures

Goal Measures Status

Improvement of the regular and irregular reporting and presentations for the agencies, not least in order to improve Deutsche Bank’s ranking in the indices

Investor Relations team: Keeping investors, analysts, and rating agencies consistently and quickly informed about business events, strategic measures, and important corporate governance issues

Chairman of the Board and CFO: Participation in investor communication through road shows and conferences

Continued communication of targeted information for investors who are interested in CSR and sustainability issues

Answering specific questions which SRI investors or portfolio managers of sustainability-oriented funds might have in one-on-one meetings

In addition to individual asset management with sustainable investments, a number of sustainability-oriented third-party funds and certificates on sustainability indices are to be offered

Targeted offers for new target groups—for example students—and new products (db StudentenBanking; see p. 20 et seq)

Targeted extension of our sales network, for example doubling of the number of branches in Poland

Hiring of additional IFC sales staff, strengthening mobile sales opportunities

High and continual investment in training and human resources, increase of the proportion of employees who hold a university degree (see p. 32 et seq)

Projects and initiatives (see p. 36) which support women in networking and in their careers at the Bank

Internally: new program “Fit in die berufliche Zukunft” (fit for your professional future)

externally: active support of the “Initiative für Beschäftigung” (employment initiative) (see p. 28 et seq)

Motivate staff to use existing offers to reconcile their professional with their private lives (see p. 34 et seq)

Ongoing

Ongoing

Ongoing

Since 2004

2006

Since 2005, ongoing

Ongoing

Ongoing

Ongoing

Introduction in Germany by 12/2006

Ongoing

Ongoing

Stiftungen und gemeinnützige Gesellschaften der Deutschen Bank

Appendix

Roll-out of the system to London, Singapore, and DB Bauspar AG in order to strengthen the local business activities and support the Corporate Center departments already integrated

Development of new, or review of existing, sustainability criteria

Stabilizing power, heating energy and water consumption, and the volume of waste to again reach the per employee levels of 2004 by improving technology in facility management

Reducing CO2 emissions resulting from energy consumption per employee by 5 –10%, back to the level of 2004

Remind staff to use resources responsibly (see p. 42 et seq)

Inform staff about sustainability-related issues such as climate change

Increase the use of environmentally friendly materials for publications Increasing the share of renewable energies in the mix of power consumed by DB to 20% in Germany

Participation in the initiative Hessische Klima-Partner

A sustainability screening for projects is being developed and projects will be evaluated once every year

Organization of mentoring programs for children of immigrants and for students of secondary schools (“Hauptschulen”) in disadvantaged communities

Free advisory services for non-profit organizations in the areas of marketing, finance, and organization

Integration of volunteering modules in HR training programs (UK)

Deploy approximately USD 45 m of the recently close Commercial Microfinance Consortium (see p. 40) to microfinance intermediaries in developing countries

Bank staff advise young people as part of the programs “Youth Bank” and “Financial Literacy” (FAB: Increase from 60 to 250 schools by the end of 2006; see p. 54)

Increase number of cities in Germany that support Common Purpose; increase in participating Bank managers in the matrix programs (see p. 83)

Community Development Finance: Introduction of integrated financial solutions to help the revitalization of disadvantaged communities (UK)

Originate at least USD 100 m in new Community Development Finance Group commitments in support of low-cost housing and economic development within urban neighborhoods in North America

Developing a concept

Integration of educational aspects into “classic” sponsorships

Ongoing

Ongoing

By 2008

Since January 2006

Since January 2006

Planned for 2006

Extension from 20 mentors (2004) to 60

2006

2006

Ongoing

FAB: To be offered Germany-wide in the long run

Ongoing

In planning

Ongoing

By December 2006

Ongoing

Society

Group-wide implementation of the Sustainability Management System (see p. 4 et seq)

Support for all departments in the implementation of their sustainability targets

Operational environmental protection:

– cutdown on the use of resources:

– support usage of renewable energies

– ensuring climate neutrality of individual departments or events organized by the Bank

Evaluation of projects by the CSR department and Deutsche Bank Foundation

Intensifying our employees’ volunteering efforts in all departments and regions

Extension of financial and social investment know-how to combat poverty

Improving the financial literacy among young people

Development of innovative solutions to the challenges within our local communities

Closer/more systematic dialogue with universities and professionals in applied science

Expanding our activities in the field of education

Social commitment

103

Goal Measures Status

104

About This ReportList of the performance indicators under the Global Reporting Initiative

Organizational Profile

2.1 cover page2.2 p. 10 et seq, 22-27, 40 et seq, AR: p. 8 et seq2.3 AR: p. 8 et seq2.4 AR: p. 8 et seq2.5 back cover page, p. 27, 32, AR: p. 112.6 back cover page, AR: p. 162.7 p. 24 et seq, AR: p. 8-10, 172.8 back cover page, p. 32, AR: p. 8 et seq, 16-18, 212.9 p. 32-35, 36 et seq, 39, 44 et seq, 48, 50, 53, AR: p. 152.10, 2.22 p. 105, 1062.11 p. 1, cover pages2.12* May 20052.13* p. 44 et seq2.14 inner and back cover pages, p. 322.15* AR: p. 3 et seq2.16* none2.17 p. 104 et seq2.18 inner cover page, p. 15, 42-472.19* p. 452.20 p. 4-7, 12 et seq, 442.21* p. 44

Management Systems

3.1 p. 5 et seq,14-17, 16 et seq, 953.2* AR: p. 12; FR: p. 172 et seq3.3* p. 6, 12-15, 16 et seq, 343.4 p. 5 et seq, 14 et seq, 16 et seq, 34 et seq; FR: p. 44 et seq3.5 AR: p. 12 et seq; FR: p. 177 et seq3.6 p. 5 et seq, 14-17, 16 et seq, 95-1003.7 p. 4-7, 12-15, 16 et seq, 34, 36 et seq, 46-49, 53, 86-89; AR: p. 23.8* AR: p. 12 et seq3.9 p. 50, AR: p. 153.10 p. 5, 12 et seq, 27, 50 et seq, 80-833.11* p. 18 et seq, 27, 34, 48, 50, 80-833.12 p. 18 et seq, 27, 493.13 p. 4-7, 12-15, 16 et seq, 20-27, 30-37, 40-493.14 p. 14-17, 36 et seq, 44, 48 et seq3.15 p. 48-503.16 p. 4-7, 12-14, 24-27, 44, 46, 493.17 p. 4-7, 12 et seq, 15, 16 et seq, 40-49, 53, 86-89, 95-1003.18* FR: p. 146 et seq3.19 p. 4-7, 12-19, 30-48, 53, 58 et seq, 62-65, 80-83, 86-89, 95-100, 102 et seq3.20 p. 4, 27, 444.1 p. 104 et seq

Economic Indicators

Core Indicators

EC1 back cover pageEC2* not relevant as no single product has a 25% market shareEC3* FR: p. 76EC4* data is not collectedEC5 p. 35, FR: p. 162 EC6,7 back cover pageEC8 FR: p. 132 et seqEC9* not reported to ensure protection of proprietary informationEC10 inner cover p., p. 33, 53, 56-65, 71, 76 et seq, 87-89, 95-100

Ecological Indicators

Core Indicators Additional IndicatorsEN1, 2*, 3, 4, 5, 8, 11, 13, 14 p. 42-45EN6*, 12* not available EN17, 19, p. 10 et seq, 30, 34 42-47EN7 support of the EN27 p. 25, 47 Peace Parks Foundation1 EN9*, 15 not relevant EN10* not reported due to the dispropor- tionate amount of expenses required to do so EN16* none

Vision and Strategy

1.1 p. 1, 4-7, 12, 18 et seq, 40 et seq, 48 et seq, 53, 95-100, 102 et seq

1.2 p. 1

In this report we have used the guidelines of the “Global Reporting Initiative” (GRI) including the “So-cial Performance Indicators” (SPI) and the “Environ-mental Performance Indicators” (GRI and UNEP Fi-nance Initiative), and we have complied with the comprehensive catalogue of “in accordance” criteria by GRI. These widely recognized indicators help to standardize sustainability reporting, thus making it comparable (see www.globalreporting.org). If this re-port repeats information already given in the annual report or financial statements, the information may be more detailed or reported differently in line with the GRI guidelines.

For further information on Deutsche Bank—in partic-ular concerning the “Economic Indicators,” the “Orga-nization Profile,” and “Management Systems”—please see the publications listed on p. 106.

1 see www.sustainability.deutsche-bank.de/en

Social Indicators

Core Indicators Additional Indicators

LA1 32, AR: p. 18, 44LA2 p. 32 et seq, AR: p. 18, 43 et seqLA3* Form 20-F (2005): p. 96LA4 p. 30 et seqLA5, 6, 7* data not availabe as this report was printed; information available upon requestLA8 p. 36 et seq, 65, 99 LA12 p. 33, 35LA9 p. 33 LA16 p. 30-35LA10 p. 36 et seq, 92 et seq LA17 p. 30-37LA11 p. 92 et seq; FR: p. 172 et seqHR1, 2, 3 p. 44, 46, 49HR4 p. 36 et seq, 46, 49 HR5*, 6*, 7* p. 46, 49 HR12 p. 36 et seqSO1 p. 50, 56-65, 71, 80-83, 86-89 SO4 p. 18, 27, 36 et seq, 58, 64, 101SO2 p. 16 et seq, 46 SO7 p. 16 et seq, 46, 49SO3 p. 50 PR6 p. 18 et seq, 27, 101PR1 p. 25 et seq PR8 p. 27PR2, 3 p. 25-27 PR11* p. 26 et seq

2 For further information, please see the risk report (pp. 44-75) in the financial reports for 2005

n.r. = not reported. This may be due to legal reasons or bank-specific regulatory limitations, in some cases also to internal guidelines, to the unavailability of data, or to the irrelevance of the element in questionFR = see Financial Report 2005AR = see Annual Review 2005Note: * denotes indices which are included in this report, but were not in the 2004 CSR Report

Environmental Performance Indicators*2

F1* p. 4-7, 15, 16 et seq F8* n.r.F2* p. 4-7, 15, 16 et seq F9* n.r.F3* n.r. F10* n.r.F4* p. 46 F11* n.r.F5* p. 6 F12* p. 10 et seq, 24F6* p. 6, 15, 16 et seq, 18 F13* n.r.F7* p. 10, 15, 24 et seq, 46-48

Social Performance Indicators (SPIs)

CSR1 p. 4-7, 30-35, 48-49, 53, 95-100 SUP1 p. 46CSR2 p. 4-7, 95-100 SUP2* n.r.CSR3 p. 5, 18 et seq RB1 p. 15, 22-27CSR4 p. 14-17, 16 et seq, 26 et seq, RB2* n.r. 30 et seq, 46CSR5* n.r. RB3* p. 22 et seq, 40 et seqCSR6 p. 34, 48, 80-83, 95-100 IB1* p. 15, 16 et seq, 24, 27, 49

INT1 p. 30-37, 92 et seq IB2* n.r.

INT2 p. 32, FR: p. 146 et seq; AR: p. 43 et seq IB3* p. 24, 40 et seq

INT3 p. 12, 34, 36 et seq AM1* p. 18 et seq, 24, 27

INT4 FR: p. 163, 177 et seq AM2* p. 40 et seq

INT5 n.r. AM3* n.r.

INT6* n.r. INS1* n.r.

INT7 n.r. INS2* n.r.

SOC1 inner cover page, p. 33, INS3* p. 26 et seq 36 et seq, 53, 56-65, 70 et seq, 77, 87, 89, 95-100

SOC2* n.r. INS4* n.r.

Appendix 105

The Design of This ReportDeutsche Bank’s activities are based on people. It is

the Bank’s employees that combine their dedication

to society with their work for the Bank—and their

motivation is their own dreams of a better future.

Therefore, the two pages at the start of each chap-

ter are dedicated to all those who work on behalf

of Deutsche Bank to make the world a better place.

We have selected colleagues from all regions and

levels within the Bank who work for a charitable

project or put particular effort into a socially-ori-

ented banking project. Lutz Widmaier was commis-

sioned to put the employees’ visions onto paper—

in the form of collages.

Widmaier was born in 1967 and was taught by

Heinz Edelmann at the State Academy of Art and

Design in Stuttgart. His illustrations have been

published in the New York Times, Handelsblatt, and

Süddeutsche Zeitung, to name just a few. Widmaier

currently works as a designer and illustrator, and

has received the Award of Excellence (Society of

News Design), the Lead Award, and an award by

the Art Directors Club. Today he lives and works

in Munich.

This report has been prepared in accordance with

the 2002 GRI Guidelines. It represents a balanced

and reasonable presentation of our organisation’s

economic, environmental, and social performance.

Tessen von Heydebreck

Member of the Management Board

and of the Group Executive Committee

Imprint/Publications

Deutsche Bank AGTaunusanlage 1260262 Frankfurt am Main GermanyTelephone: +49 69 910-00deutsche.bank@db.com

Corporate Social Responsibility Frank Trümper (Global Head)Hanns Michael Hölz (Sustainability Management)Michael Münch (Cultural Management)

Responsible for Content:Frank Trümper

Contact:Tanja ChristDeutsche Bank AGCorporate Social ResponsibilityCultural ManagementRossmarkt 1860311 Frankfurt am MainGermanytanja.christ@db.comwww.db.com/csr/en

Concept and Layout:Scholz & Friends Berlin

Text:vier-x Kompetenzteam in Sachen Nachhaltigkeit

Editorial Remark:All the information in this report has been compiled in good faith and with the greatest care and circumspection. To this end we have relied on many sources. To the best of our knowledge, the information, figures, and data con- tained in this report correspond to the truth. Nevertheless, we can assume no liability for the correctness or complete- ness of the information provided herein.

We would like to thank all our colleagues and everyone outside the bank for their friendly support in making this report possible.

Photo Credits:p. 10:Ingo Bullap. 11:Jörg Siebeneichler, Mehmet y. Parmak, Walter Bracht, KGW Schwerinp. 22–23:Sabine Grothuesp. 44 (t.), p. 86 (m. r.):H. J. Herrmannp. 46:Martin Joppenp. 49:UN/DPI, Photo: Mark Gartenp. 58 (t.):Peter Adamikp. 58 (l. b.):Frank Nürnbergerp. 64 (l. t.):Fotostudio Haffap.65 (r.), p. 86–87:Anthony Epesp. 65 (t.):EDC Thailandp. 68 (t.):Stache AG Klang Brandisp. 68 (b.):Dietrich Mildep. 69:Almut Schülkep. 70 (l.):Jörg Reichardtp. 70 (m.):Katrin Schanderp. 71 (r.):Hans Jörg Michelp. 71 (l.):Barbara Fahlep. 74–75 (t.):Mathias Schormannp. 74 (b.):Alexander Heimannp. 76 (t.):William Kentridgep. 77 (l.):Photo: Wolfgang Volz© 2005 Christop. 77 (r.):Lee Mawdsleyp. 80 (t.):Robert Weilandp. 80 (b.):Philipp Rodep. 81:Antrim Caskeyp. 83 (l.):Jürgen Moogp. 83 (r.):Hannelore Förster

This report “Corporate Social Responsi-bility 2005” is climate neutral. This means that the amount of greenhouse gas emis-sions caused by production and distri-bution of this publication (60 t CO2e) have been offset by investing in a high-quality climate protection project: the Bagepalli CDM Biogas Program in India.

We will be happy to send you the following publications relating to the financial statements:

Annual Review 2005

Financial Report 2005

Form 20-F

Annual Financial Statements and Management Report of Deutsche Bank AG 2005

List of mandates 2005

List of shareholdings 2005

List of Advisory Council Members 2005 (German)

How to order:– by e-mail to

deutsche-bank@pks-direkt.de– on the Internet at

www.deutsche-bank.com/05– by fax to +49 69 95 00 95 29– by phone to +49 69 95 00 95 30– by post from:

Deutsche Bank AG Leser-Service-PKS 60262 Frankfurt am Main Germany

Paper:Arctic Volume

106

Deutsche Bank The Group at a Glance

2005 2004

Share price at period end ¤ 81.90 ¤ 65.32

Share price high ¤ 85.00 ¤ 77.77

Share price low ¤ 60.90 ¤ 52.37

Dividend per share (proposed for 2005) ¤ 2.50 ¤ 1.70

Basic earnings per share ¤ 7.62 ¤ 5.02

Diluted earnings per share1 ¤ 6.95 ¤ 4.53

Average shares outstanding, in m., basic 463 493

Average shares outstanding, in m., diluted 509 532

Return on average total shareholders’ equity (post-tax) 12.5 % 9.1 %

Adjusted return on average active equity (post-tax)2,3 16.2 % 10.5 %

Pre-tax return on average total shareholders’ equity 21.7 % 14.8 %

Pre-tax return on average active equity3 24.3 % 16.3 %

Pre-tax return on average active equity (per target definition)3,4 24.7 % –

Cost/income ratio5 74.7 % 79.9 %

in ¤ m. in ¤ m.

Total revenues 25,640 21,918

Provision for loan losses 374 372

Total noninterest expenses 19,154 17,517

Income before income tax expense and cumulative effect of accounting changes 6,112 4,029

Net income 3,529 2,472

Dec 31, 2005 Dec 31, 2004 in ¤ bn. in ¤ bn.

Total assets 992 840

Loans, net 151 136

Shareholders’ equity 29.9 25.9

BIS core capital ratio (Tier I) 8.7 % 8.6 %

Number Number

Branches 1,588 1,559 thereof in Germany 836 831

Employees (full-time equivalent) 63,427 65,417 thereof in Germany 26,336 27,093

Long-term rating

Moody’s Investors Service, New York Aa3 Aa3 Standard & Poor’s, New York AA– AA– Fitch Ratings, New York AA– AA–

1 Including effect of dilutive derivatives, net of tax.2 Net income of ¤ 3,529 million for 2005 and ¤ 2,472 million for 2004 is adjusted for the reversal of 1999/2000 credits for tax rate changes of ¤ 544 million for 2005 and ¤ 120 million for 2004.

3 We calculate this adjusted measure of our return on average total shareholders’ equity to make it easier to compare us to our competitors. We refer to this adjusted measure as our “return on average active equity.” However, this is not a measure of performance under U.S. GAAP and you should not compare our ratio to other companies’ ratios without considering the differences in calculation of the ratios. The items for which we adjust the average shareholders’ equity of € 28,201 million for 2005 and € 27,194 million for 2004 are the average unrealized net gains on securities available for sale, net of applicable tax effects of € 2,023 million for 2005 and € 1,601 million for 2004 and the average dividends of € 1,048 million for 2005 and € 815 million for 2004. The dividend is paid once a year following its approval by the general shareholders’ meeting.

4 Our pre-tax Return on Equity target is defined as pre-tax income on a reported U.S. GAAP basis (2005: € 6,112 million) adjusted for restructuring charges (2005: € 767 million) and substantial gains from industrial holdings (2005: € 666 million) divided by average active equity (2005: € 25,130 million).

5 Noninterest expenses as a percentage of net interest revenues before provision for loan losses plus noninterest revenues.

003 83304 25 • 5/06